2019 REPORT
A “We bring to the world JOYFUL, WHOLESOME
The “Good for You, Good for the Planet” report is the tool used by Barilla to share and HONEST FOOD, the path taken by the Company with society at large, in line with the United Nations’ Sustainable Development Goals, part of the 2030 Agenda. In addition, the report outlines the key results achieved to date and the road mapped inspired by the ITALIAN out for the years to come. The information and data provided relate to Barilla G. e R. Fratelli S.p.A. for the LIFESTYLE and the period 1st January – 31st December 2018, unless otherwise stated. Discover more on the Group’s website: www.barillagroup.com MEDITERRANEAN DIET” B 1 INDEX
04 78 VALUE FOR PEOPLE AND GOOD FOR YOU FOR SOCIETY AS A WHOLE Nutrition Food quality and safety 06 Responsible marketing WHO WE ARE AND Food education WHO WE WANT TO BE 98 08 GOOD FOR THE PLANET BARILLA GROUP Responsible supply chains Group profile Protection of animal welfare Values Management of packaging materials Awards Production
22 140 GOVERNANCE DIVERSITY AND INCLUSION Our model Barilla People The Code of Ethics Wellbeing of employees Fighting corruption Attracting and developing talents Risk management Training and communication People’s health and safety 36 Trade Union Relations HOW WE RESPOND Inclusion of communities TO GLOBAL CHALLENGES International scenario 170 Consumer goods sector ANNEX BCFN Foundation Methodological note Contribution to the 2030 Agenda GRI Index Discover our brands
62 RESPONSIBLE STRATEGY Materiality analysis Global goals and Barilla Stakeholder engagement
2 3 CHAPTER 1 | VALUE FOR PEOPLE AND FOR SOCIETY AS A WHOLE VALUE FOR PEOPLE AND FOR SOCIETY AS A WHOLE
GUIDO, LUCA AND PAOLO BARILLA, Chairman and Vice-Chairmen
Last year, 2018, marked the 25th anniversary of the passing of our father, Pietro, which also prompted a moment of reflection on how far Barilla has come since then. One of the many valuable things our father passed on to us was the leading by example of taking care of one’s neighbour and community. Following in his footsteps, we strive to carry on his work, going beyond the set boundaries to tackle issues that have become extremely important and require urgent attention. We do this by promoting the importance of territories, by sharing our experience and skills with the people who live there, by launching or participating in projects that im- prove the quality of life and by offering close and fruitful partnerships with the farmers who supply the best raw materials for our products. In recent years, inspired by the Barilla Mission “Good for You, Good for the Planet”, we have made important progress, offering products with significantlyimproved nutritional profiles. We have developed educational projects and other initiatives on healthy lifestyles in partnership with qualified public and private operators; we have fur- ther reduced the environmental impact of our work; we have opened our factories to the public and, embracing full transparency, showed them how our products go from field to fork, covering the entire Barilla supply chain. We are also aware that, despite continuous progress, we can always improve. The challenges we face are increasingly pressing and delicate. Climate change, the exploitation of natural resources, food security and unhealthy eating habits are always at the forefront of our minds, as we are all too aware that “the Planet is on fire” and there is no more time to waste. We believe that the most important mission for human beings and organisations is to leave a positive mark on the world, as a virtuous example of behaviour in the interest of the greater good of future generations and the Planet. Today more than ever, every person on Earth has the chance to play their part, even by simply doing the right thing. That is what Barilla, together with all its invaluable human resources, is committed to doing.
4 5 CHAPTER 2 | WHO WE ARE AND WHO WE WANT TO BE WHO WE ARE AND WHO WE WANT TO BE | CHAPTER 2
IN AN EVER MORE CHALLENGING NATIONAL AND WHO WE ARE AND INTERNATIONAL ENVIRONMENT, HOW IS BARILLA DOING? WHO WE WANT TO BE We are aware that food is not only what umes, with no added sugars or lower CLAUDIO COLZANI, Chief Executive Officer we eat: it reflects on people’s quality of salt, fat and saturated fat content.We have life, on the wellbeing of animals and the worked on the supply chains of our most Planet. important raw materials to make a positive contribution to farmers, communities Our Mission “Good for You, Good for the and the Planet. Planet” represents a solid point that guides WHAT DID 2018 REPRESENT FOR BARILLA? us constantly and allows us to undertake Today we engage with over 5,000 compa- new paths quickly and decisively. nies through cultivation contracts, ensur- ing a fair price to farmers and guarantee- Last year, 2018, represented for the Group Rubbiano plant, dedicated exclusively to the In this direction, we have ivested money ing premiums for high quality. another year of encouraging results, production of sauces and pestos. In this and resources to improve the nutritional thanks to all the people that choose our category we confirmed our leadership in profile of existing products. First of all by We ensure that all our suppliers of raw products everyday, appreciating and en- Continental Europe. completely eliminating palm oil from all materials of animal origin comply with hancing our way of doing business. With regard to the bakery category, we our breads and bakery goods, extending the higest standards, in compliance with achieved positive results in some markets, a project started in 2015 with our Harrys the Barilla Guidelines on Animal Welfare. This allowed us to record positive results such as Italy, having consolidated the brand products. To this end, Barilla has publicly committed in all the regions in which we operate. leading position for this category, in France In addition, we have introduced new itself not to test raw materials or products In terms of products, we have achieved pos- for soft breads and in Scandinavia and products rich in fiber or based on leg- on animals, either directly or indirectly. itive results in the pasta category at global Central Europe for crispbreads. level, confirming our leadership worldwide. The sauce category also registered very GIVEN THE FUTURE CHALLENGES FOR MANY YEARS TO COME, good results, thanks to the efforts of the WHAT ARE THE NEXT STEPS?
We have set ourselves challenging goals virtuous path in terms of recyclability and 2018: for the years to come: some will concern we are working to become the first com- +1% +3% another year of our daily choices, others will require our pany in the world with 100% recyclable in terms in terms encouraging results commitment and dedication over a longer product packages. Finally, we are working of volumes of turnover period of time. to guarantee our People a stimulating, (NET OF EXCHANGE RATE EFFECTS) In line with our Mission, I am pleased to flexible and inclusive work environment. announce that Wasa has become a CO2 As part of our commitment to diversity compensated brand and very soon other and inclusion, we are working on elimi- Barilla brands will follow the same path. nating the gender pay gap. Furthermore, we have embarked on a
6 7 BARILLA GROUP
3.1 Group profile 3.2 Values 3.3 Awards CHAPTER 3 | BARILLA GROUP BARILLA GROUP | CHAPTER 3 3.1 GROUP PROFILE EMPLOYEES
8,358 (2017)
8,427 (2018)
A passion for quality, a continuous TURNOVER* PRODUCT CATEGORIES search for excellent recipes and the abil- million € invested (MILLION EUROS) (TURNOVER) ity to combine tradition and innovation 276 have led a small shop, set up in Parma 2018 in 1877 to produce bread and pasta, to The Barilla Group is present all over the become the world leader in the pasta world with its brands, which have become 3,460 3,483 53% market, ready-made sauces in Continen- an icon of excellence in the food sector, 2017 PASTA, SAUCES, tal Europe, bakery products in Italy and and with 28 production sites, which each READY MEALS crispbreads in the Nordic countries. year contribute to the production of over 1,900,000 tonnes of products. *(NET OF EXCHANGE RATE EFFECTS) The Group has set up an organisational structure which identifies the operating 46.5% GEOGRAPHICAL AREAS BAKERY sub-holding Barilla G. and R. Fratelli S.p.A. (TURNOVER) as the company dedicated to the produc- Over 1,900,000 PRODUCTS tion of pasta, sauces and bakery products, tonnes of products sold 31.5% at national and international level. REST OF EUROPE 45.9% AND RUSSIA ITALY 0.5% THE GROUP’S BRANDS OTHER BRANDS
Pantone Pantone 1795 C 295 C PASTA: WORLD LEADER* READY SAUCES: LEADER IN CONTINENTAL EUROPE**
BAKERY PRODUCTS: LEADER IN ITALY* SOFT BREADS: LEADER IN FRANCE* 18.6% 4% CRISPBREADS: LEADER IN SCANDINAVIA AMERICA ASIA, AFRICA, AUSTRALIA AND CENTRAL EUROPE*
S.P.A. *SHARE BY VOLUME (units sold by the company/total units sold on the market) **SHARE BY VALUE (company turnover/total market turnover)
10 11 CHAPTER 3 | BARILLA GROUP BARILLA GROUP | CHAPTER 3
BARILLA UNITED STATES CANADA MEXICO BRAZIL EUROPE ITALY TURKEY ARAB EMIRATES RUSSIA SINGAPORE JAPAN WORLDWIDE 1 1 1 1 2 5 1 1 1 1 1
1 1 15 2 1 1 CHINA AUSTRALIA We have 28 PRODUCTION SITES, 2 8 10 1 14 in ITALY and 14 ABROAD, 2 1 1 1 which produce over 1,900,000 1 TONNES of food products every year, which we export to over 100 COUNTRIES.
RUSSIA
CANADA EUROPE
100 TURKEY COUNTRIES UNITED STATES JAPAN ARAB EMIRATES CHINA
16 MEXICO BRANDS
SINGAPORE 4 BRAZIL CONTINENTS AUSTRALIA
28 PRODUCTION SITES
14 IN ITALY ITALY 14 ABROAD LEGEND
MILLS PLANTS OFFICES RESTAURANTS CUSTOMER COLLABORATION CENTER 12 13 CHAPTER 3 | BARILLA GROUP BARILLA GROUP | CHAPTER 3
ITALY REST OF EUROPE AND RUSSIA
PRODUCTION PLANTS SURFACE AREA HOURS WORKED PRODUCTION PLANTS SURFACE AREA HOURS WORKED Pedrignano France Foggia Malterie Caserta StVulbas Rubbiano Talmont Ascoli 2,893,000 sq. m 4,737,000 Valenciennes Castiglione Gauchy Cremona Sweden 960,000 sq. m 2,995,000 Melfi Filipstad Novara Russia BRANDS PRODUCED EMPLOYEES PRODUCTION Solne Germany 2,979 1,086,000 t. Celle Greece GREENHOUSE GAS EMISSIONS Thiva Barilla Scope 1 113,198 t.CO2eq BRANDS PRODUCED EMPLOYEES PRODUCTION Voiello Mulino Bianco Scope 2 115,248 t.CO2eq 2,054 265,000 t. Pavesi CO2 emissions per tonne 0.22 t. GREENHOUSE GAS EMISSIONS Gran Cereale of finished product Pan di Stelle Scope 1 24,346 t.CO2eq WATER USE Wasa Barilla Water drawn 1,791,431 m3 Mulino Bianco Scope 2 21,264 t.CO2eq Harrys Water drawn per tonne of CO2 emissions per tonne 1.72 m3/t. Misko 0.15 t. finished product of finished product Wasa WATER USE Water drawn 338,428 m³ Water drawn per tonne of 1.09 m3/t. finished product
14 15 CHAPTER 3 | BARILLA GROUP BARILLA GROUP | CHAPTER 3
AMERICA AAA
PRODUCTION PLANTS SURFACE AREA HOURS WORKED PRODUCTION PLANTS SURFACE AREA HOURS WORKED United States Turkey 140,000 sq. m 427 Ames Bolu Avon 757,000 sq. m 1,285 BRANDS PRODUCED EMPLOYEES PRODUCTION Mexico St. Luis 143 88,000 t. BRANDS PRODUCED EMPLOYEES PRODUCTION GREENHOUSE GAS EMISSIONS 588 303,000 t. Scope 1 6,945 t.CO2eq GREENHOUSE GAS EMISSIONS Barilla Mulino Bianco Scope 2 11,612 t.CO2eq Scope 1 31,271 t.CO2eq Harrys CO2 emissions per tonne 0.21 t. Misko of finished product Barilla Scope 2 48,970 t.CO2eq Wasa WATER USE Vesta CO2 emissions per tonne 0.26 t. Yemina of finished product Water drawn 65,352 m3 WATER USE Water drawn per tonne of 0.74 m3/t. finished product Water drawn 254,262 m3 Water drawn per tonne of 0.84 m3/t. finished product
16 17 CHAPTER 3 | BARILLA GROUP
3.2 VALUES Barilla People work with PASSION to offer everyone tasty, nutritionally-balanced and high quality products.
OUR VALUES ARE THE INGREDIENTS THAT CHARACTERISE AND The Barilla Group looks to ENRICH THE GROUP’S the future with COURAGE CHOICES AND ACTIONS by promoting the constant EVERY DAY AND INSPIRE development and innovation THE ACTIVITY OF ALL of its People, relationships OUR PEOPLE. and company.
Barilla People are an inexhaustible source of passion and INTELLECTUAL CURIOSITY, who work with professionalism every day to do ever more, ever better.
For the Barilla Group, it is vitally important to establish a relationship of TRUST and respect with consumers, stakeholders and all its People, anywhere in the world.
Our employees work according to the BARILLA “STYLE”, with diligence, dignity and respect for their profession, drawing inspiration from the principles and values shared within the Code of Ethics, including INTEGRITY.
18 19 CHAPTER 3 | BARILLA GROUP BARILLA GROUP | CHAPTER 3 3.4 AWARDS
Barilla was awarded first prize at the Disability Matters Europe Con- ference & Awards, in the Steps to Success category, for its Hackabili- ty@Barilla project, in which the company demonstrates its economic and planning commitment to issues of diversity and inclusion.
The Human Rights Campaign (HRC) organisation in the United States drew up the Corporate Equality Index report for 2018. This index is a national assessment tool for company policies regarding lesbian, gay, bisexual and transgender (LGBT) employees. Based on the results achieved, the HRC awarded Barilla America a 100% index score.
The Cradle Foundation awarded Barilla America the Silver Cradle Award for the support given to adoptions by the company’s employees.
The constant commitment and sensitivity shown by the Barilla Peo- ple and the Company in favour of adoptions earned Barilla America the Best Adoption-Friendly workplace award from the Dave Thomas Foundation for Adoption.
The Business Benchmark on Farm Animal Welfare Report 2018 Nicky Amos & Dr Rory Sullivan Barilla confirms its leadership position in the report of the global busi- ness benchmark on farm animal welfare BBFAW, the only Italian company to occupy level 3 on the pyramid.
1
Barilla has been awarded among the 20 most inclusive companies by the Diversity Brand Index, that is a research conducted by Diversity and Focus Management, aimed at measuring the ability of brands to effectively develop a Diversity & Inclusion oriented culture.
The UN Refugee Agency (UNHCR) has awarded several Italian com- panies, including Barilla, for having promoted and supported the so- cial and professional integration of refugees during 2018.
20 21 GOVERNANCECHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4
4.1 Our model 4.2 The Code of Ethics 4.3 Fighting corruption 4.4 Risk management
22 23 CHAPTER 4 | GOVERNANCE 4.1 OUR MODEL
The Barilla Group has a conventional admin- tors appointed for three financial years, istration and control system which includes: which oversees compliance with the law, the articles of association and the • A BOARD OF DIRECTORS, consisting of principles of correct administration. eight directors, including two executive and independent, two executive and four • THE SHAREHOLDERS’ ASSEMBLY, non-executive ones. The Board provides which is responsible for appointing the for the ordinary and extraordinary man- members of the Board of Directors and agement of the company and defines the the Board of Statutory Auditors, and for strategic guidelines, assessing the appro- approving the Financial Statements. At priateness of the organisational, adminis- the top of the company, the Chairman trative and accounting structure and the and Vice-Chairmen guarantee that the general performance of management. Group’s sustainability Mission is under- stood, developed and in keeping with • THE BOARD OF STATUTORY AUDI- the values that guide the company’s TORS, consisting of five statutory audi- operations.
COMPOSITION OF THE BOARD COMPOSITION OF THE BOARD OF DIRECTORS, IN TERMS OF GENDER OF DIRECTORS, IN TERMS OF AGE
13% 12% WOMEN 35-50
87% 88% MEN >50
24 CHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4
SUSTAINABILITY GOVERNANCE
At the top of the Company, the Chairman assesses consistency with the established ried out at Group level by a special GYGP Task Force, consisting of experts from the and Vice-Chairmen guarantee that the objectives, verifying the progress made. Board (Good for You, Good for the Plan- Research, Development and Quality, Sup- Group’s Mission is understood, developed et Board), coordinated by the GYGP Unit, ply Chain, Marketing and Communication and in line with the values of the company. The task of identifying strategies and which operates within Global Marketing. departments, is responsible for encourag- The Management Committee, consisting of guidelines, as well as identifying sustain- ing the company to implement the deci- the CEO and the managers who report to able development projects and monitor- The Board consists of the CEO’s front line sions taken by the Board. him, defines the development strategies and ing the specific sustainability risks, is car- executives. Furthermore, a specific GYGP
GOVERNANCE
CHAIRMAN, VICE-CHAIRMEN AND CEO
GYGP BOARD
JEAN-PIERRE ANTONIO RAFFAELE VICTORIA MARIAPAOLA FRANCO LUCA COMTE COPERCINI DALOISO SPADARO VETRUCCI GUARIGLIA VIRGINIO GRANT Chief Chief Legal President Chief Supply Chief Marketing Chief R&DQ Chief Strategy & Communication Transformation and Compliance and External Region America Chain Officer Officer Officer Officer Officer Relations Officer
GYGP UNIT
26 27 CHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4 4.2 THE CODE OF ETHICS 4.3 FIGHTING CORRUPTION
Barilla’s Code of Ethics is the foundation of from within the Group and an external one, Barilla does not tolerate any form of ness among all the people who work the Group’s Governance structure, it guides appointed to guarantee the autonomy, in- corruption, whether active or passive, for Barilla of the risk of fraud and at the actions and decisions of the company dependence, professionalism and continui- and undertakes to comply with the an- strengthening the internal manage- and of all those acting on its behalf. ty of action of the Body. ti-corruption laws in all the countries in ment and prevention system. The which it operates. roles and responsibilities of each This Code is aimed at all Group stakehold- During 2018, the Group also set up the Eth- corporate function in identifying and ers and describes the rules of conduct ics and Compliance Committee, with the To this end, the Group is committed to managing fraudulent incidents are intended to support sustainable growth aim of strengthening the culture of ethics implementing all the measures needed also defined within the document. and protect the company’s reputation, in and corporate compliance and ensuring to prevent and avoid corruption and compliance with the principles and values the uniformity of compliance management bribery, thus maintaining the highest • THE POLICY ON THE MANAGE- that have always characterised Barilla and throughout the Group, through constant standards of integrity. MENT OF GIFTS (Receiving Gifts which are shared at Group level through improvement of the efficiency and effec- and Entertainment Corporate Poli- out the world. tiveness of the compliance systems present In particular, in addition to the govern- cy/Offering Gifts and Entertainment Respect for and compliance with the prin- in the various Barilla organisations around ance tools adopted for the purpose of Corporate Policy), consisting of two ciples of the Code of Ethics are promoted the world. identifying, preventing and controlling documents that establish specific through specific training programs for Ba- In order to allow all employees to report corruption risks, such as the Organisa- guidelines for the management of rilla People, awareness-raising activities on abnormal behaviour and presumed or ac- tional Model 231 and the Code of Ethics, gifts offered and received by people ethical values and rules and appropriate tual violations of the Code of Ethics or cur- Barilla has issued the Anti-Bribery Cor- working on behalf of Barilla, estab- communication activities. rent regulations, Barilla has set up a Group- porate Policy. This policy defines precise lishing in particular a maximum val- The Barilla Code of Ethics is also an inte- wide whistleblowing system. Thanks to guidelines for behaviour aimed at all Ba- ue threshold above which gifts are gral part of the Organisation, Management this tool, through a dedicated e-mail ac- rilla People employed in activities at risk not allowed to be given or received. and Control Model adopted by the Barilla count, the Company is able to accurate- of committing this offence. In support of Group in compliance with the Legislative ly manage and quickly verify any reported this policy, Barilla has also implemented • THE POLICY ON DONATIONS, with- Decree 231/2001. This is because Barilla is violations, take appropriate measures and a new IT tool in its purchasing processes in which the Group outlines the re- aware that integrity and ethical values are guarantee the anonymity of the person that allows the Group to identify suppli- quirements that non-profit and char- essential aspects of business operations. making the report. Over the course of the ers previously involved in cases of cor- itable organisations must meet in Compliance with the Code of Ethics and year, the Group also implemented a new ruption. order to receive products and dona- the Organisational Model is guaranteed by digital whistleblowing platform, in order to In addition to the anti-corruption policy, tions from Barilla and its employees. the Barilla Group Supervisory Body, which supply all stakeholders with an additional Barilla has issued: carries out specific supervisory and moni- innovative tool to report any violations or Any risks or cases of corruption must be toring activities. Barilla’s Supervisory Body is unethical behaviour to Barilla’s Ethics and • THE ANTI-FRAUD POLICY, aimed reported using the dedicated email ad- a collective body made up of two members Compliance Committee. at improving knowledge and aware- dress [email protected] or
28 29 CHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4 the new online whistleblowing portal. staff awareness and training activities on 4.4 RISK MANAGEMENT During 2018, the Group received no re- the subject. Over the course of the year, the ports of corruption. A further preventive Group involved 2,410 employees in training measure taken to reduce the risk of the and information activities on the subject of crime of corruption being committed is the fighting corruption.
ASSESSMENT OF PROCESSES Barilla adopts an integrated risk manage- are identified, evaluated and classified AT RISK OF CORRUPTION ment model (Enterprise Risk Management, in order of priority. Following this eval- ERM) which requires the cooperation of all uation, the Group also defines the ac- company organisational units. The aim of tion plan for managing the identified In Italy, in the context of activities carried particular, the analysis carried out con- this model is to ensure comprehensive risks and the related monitoring ac- out to map the risks connected with Leg- cerned: mapping of the risks to which the com- tivities. This control activity allows the islative Decree 231, Barilla assessed 21 pany is exposed, measuring and classify- company to assess the effectiveness company processes, around 78% of the • relations with Public Administration; ing them with common metrics aimed at of the action plans themselves and total processes mapped, as being most • raw material purchasing processes; prioritising them and ensuring that they the adequacy of the monitoring of the exposed to the risk of corruption and • product sales processes; are managed and monitored, sharing this mapped risks. Furthermore, in order therefore monitors them scrupulously. In • staff selection and hiring activities. with senior management. to monitor the most critical exposures The Barilla Board of Directors plays an and the implementation of planned active role in ensuring the correct imple- containment measures, an update of mentation of this model, as it is directly in- the risk profile is periodically presented volved in defining the risk governance sys- to the senior management. tem as well as in identifying and validating the main risks to which Barilla is exposed. The Barilla model also provides that, for The integrated risk management system each business area for which a risk has adopted by the Group consists of two fun- been identified, a manager (risk owner) is damental elements: assigned who is entrusted with the task of supervising and managing the risk. The • THE RISK GOVERNANCE MODEL, identified risks are included in a specific which defines the roles and responsibil- database, the Risk Register, which is con- ities within the entire company organ- stantly updated. isation that are needed to ensure that The results of ERM’s activities are also pe- the Group correctly identifies and man- riodically brought to the attention of the ages the main risks that can hinder the Board of Directors which, at least annu- achievement of business objectives. ally, assesses the company’s level of ex- posure to the risks, approves action plans • THE RISK MANAGEMENT PROCESS, for risk management and, if necessary, which involves performing an annual requires activities to be carried out to im- risk assessment, during which the risks prove the ERM process.
30 31 CHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4
THE ENTERPRISE RISK MANAGEMENT PROJECT ENVIRONMENTAL RISKS RISKS RELATED TO PERSONNEL MANAGEMENT Barilla periodically monitors the risks associ- During 2017, the Barilla Group launched RISKS RELATED TO CORRUPTION ated with its production activities that may The main risks identified by Barillain the a three-year project aimed at perfect- AND FRAUD generate a negative impact on the envi- management of human resources relate ing the Company’s risk management ronment, focusing in particular on the fol- to the difficulty of attracting new talents, system, starting from a review of the risk This includes risks related to Barilla’s ad- lowing factors: direct and indirect emissions particularly in the fields of technology and governance model and the risk assess- ministrative responsibility in the event of of greenhouse gases derived from burning engineering; the loss of people in impor- ment methodology. violations of anti-corruption rules. The fuels and the use of electricity; the use of tant positions in the organisation; pro- Group constantly monitors the risks asso- water resources within production process- tecting the health and safety of people in As part of the project, a risk analysis activity ciated with corruption and fraud crimes, es; the use of non-renewable raw materials, the workplace; and the low perception by was carried out, involving the top manage- maintaining a “zero tolerance” approach particularly plastic, in the packaging of prod- employees of the Group’s commitment ment of the company, aimed at identifying to unethical attitudes and violation of the ucts; and the production of waste resulting in to diversity and inclusion. the main financial and non-financial risks regulations in force in these areas. particular from production waste and prod- with potential impacts on Barilla’s business. In order to mitigate any risks of corruption, uct packaging. Barilla monitors the environ- With regard to the search and recruitment The activities related to this project con- Barilla has issued its own anti-corruption mental footprint of its products throughout of new talents during the year, the Group tinued during 2018 and mainly concerned: policy and actively promotes the adoption their life cycle and actively supports farmers implemented new career development by everyone who works for the Group of in the supply chain in adopting sustainable plans, launched employee satisfaction sur- • further development of the risk assess- attitudes that comply with the standards of agricultural practices. veys and promoted the implementation of ment methodology, with a main focus behaviour defined in the Code of Ethics, Over the last few years, the significance of employer branding initiatives. on their quantification; based on the principles of transparency risks associated with climate change and the and honesty. consequent negative effects on the supply With regard to health and safety in the • strengthening of the correlation be- of raw materials has increased. In this con- workplace, Barilla is committed to con- tween business strategy and risks; Furthermore, the Group has established an text, the Group has identified potential criti- stantly reducing accidents both in the pro- anti-fraud control policy aimed at strength- cal issues related to a reduction in agricultur- duction processes and during corporate • completion of the mapping of ESG ening internal awareness and knowledge al production volumes and an increase in the travel by employees. (Environmental, Social and Govern- regarding the risk of fraud, as well as im- volatility of raw material prices. The increase Over the years, this commitment led to ance) risks; proving the internal control system for in CO2 emissions into the atmosphere and an international support system for mobil- preventing and identifying it. rising global temperatures could have neg- ity being developed, to the certification of • identification of the main emerging risks As a further safeguard against the risks as- ative effects on agricultural yields and grain production plants according to the OHSAS for Barilla deriving from the Italian mac- sociated with corruption, Barilla carries out quality, a strategic and fundamental raw ma- 18001 standard and to the start of specific roeconomic scenario, climate change periodic audits performed by the Internal terial for Barilla products. training for all the people involved in deal- and the main global consumption Audit function on various company pro- In order to mitigate the risks associated with ing with emergencies and fires. Barilla also trends. cesses, as well as carrying out legal checks climate change, the Group has played an launched its Zero-accident plan during the during the process of hiring new people active for many years in sustainable farm- year. In particular, the analysis conducted led to to the Company. Finally, the Group has es- ing initiatives and actively collaborates with the potential risks attributable to the Group’s tablished a specificwhistleblowing system universities and research centres to develop Diversity and Inclusion are an integral part Good for You, Good for the Planet Mission available to all stakeholders for reporting new agricultural techniques capable of safe- of the Group’s culture, values and Code being identified in the following areas: any cases of corruption or fraud. guarding the natural environment. of Ethics. Barilla respects and promotes
32 33 CHAPTER 4 | GOVERNANCE GOVERNANCE | CHAPTER 4 every kind of diversity in terms of age, cul- non-compliance with product standards RISKS RELATED TO SUPPLIER with the main raw materials used by the ture, ethnicity, religion, political opinion, and quality standards, the Group has es- MANAGEMENT Group, in particular eggs, olive oil and marital status, gender, physical ability or tablished the Global Quality, Food Safety organic products. sexual orientation. For the management and Technical Regulatory function. This The main risks associated with manag- of these issues, and the risks associated function is responsible, in collaboration ing suppliers relate to the unavailabil- The Group has also formulated a Sustain- with them, Barilla has established a glob- with the Advanced Research Laborato- ity of high quality raw materials, the able Agriculture Code which establish- al Diversity and Inclusion committee and ry of Barilla, for identifying and assess- development of supply chains that do es a series of principles aimed at ensur- has appointed a professional within the ing product quality and safety risks, con- not comply with Barilla’s sustainabil- ing responsible purchasing management organisation with responsibility for Diver- sidering both the risks already covered ity requirements and episodes of food practices and ethical relations with all the sity and Inclusion issues. and the emerging ones. Another activity fraud. In this context, the Group carries actors involved in the supply chain. With- aimed at preventing any risks in this area out accurate risk assessment campaigns in the Good for You, Good for the Planet The main measures adopted by the Group is the company’s collaboration with uni- to identify and monitor the most criti- values, Barilla has defined specific KPIs in to improve the perceived level of protec- versities and active participation in work- cal product risk categories associated terms of a sustainable supply chain. tion and promotion of D&I throughout ing groups on this topic. the Group include: training sessions for internal resources; adoption of the UN With regard to products, Barilla has iden- Code of Business Conduct against LGB- tified additional risks related to the nutri- TI discrimination in the workplace; draft- tion and nutritional profile of its recipes. ing of the New Code of Ethics; launch of In fact, over the last few years there has the marketing and communication cam- been a significant change in the choic- paign on diversity issues; and removal es made by consumers as they are in- of the “unjustifiable” gender pay gap by creasingly attentive to product quality 2020. and in particular to the characteristics and ingredients of food. In order to man- RISKS RELATED TO PRODUCTS age and mitigate these risks, the Group provides consumers with complete and With regard to products, the main risks transparent nutritional information about identified by Barilla concern their quality its products. and safety. In this context, potential crit- ical issues emerge both from the con- Furthermore, Barilla has defined specific stant change in the relevant regulatory objectives for improving the nutritional context and from the consequent cas- profile of its foods, monitoring progress es of non-compliance, either internally, made through defined KPIs. within the company, or by suppliers and copackers. In 2018, the Responsible Marketing Prin- ciples were formalised, containing a sec- Due to the very nature of the food sec- tion dedicated to marketing communi- tor, the potential impact on consum- cations aimed at children drawn up in ers’ health and safety resulting from any collaboration with UNICEF.
34 35 CHAPTERHOW 5 | HOW WEWE RESPOND RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5 TO GLOBAL CHALLENGES
5.1 International scenario 5.2 Consumer goods sector 5.3 BCFN Foundation 5.4 Contribution to the 2030 Agenda 5.5 Discover our brands
36 37 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
5.1 INTERNATIONAL SCENARIO dissemination of eating habits consistent there is a growing level of excess weight with the Mediterranean diet, less than 15% and obesity in children. of the adult population is obese, although
CLIMATE CHANGE
Increasingly radical climate change, a world-leading company in food produc- greenhouse gas emissions and the indis- tion, Barilla therefore has a duty, through its Over the last few years, we have been have significant consequences on the fu- criminate use of natural resources are activities, to make a concrete contribution witnessing the first real effects of climate ture of natural resources and place severe having a significant negative impact. In to the many social and environmental chal- change: temperatures are generally ris- constraints on agricultural production, this scenario, the current agriculture sys- lenges of today’s global context, particular- ing, rainfall is changing, ice and snow are thereby affecting global food availability tem is no longer sustainable, neither for ly as regards issues of nutrition and people’s melting and the average sea level is rising and the stability of food supplies. human health, nor for the environment. As health, climate change and food waste. globally. The agricultural and food sector, however, A critical scenario is thus emerging, made is not only influenced by climate change, HUMAN HEALTH AND NUTRITION even more negative by the recent stud- it also contributes substantially to it. ies on the subject that foresee an exac- Agricultural production and food process- erbation of the effects of climate change ing processes are two primary sources of Ending hunger globally, ensuring food matic events such as droughts and floods, in the near future, at a speed higher than greenhouse gas emissions. security and improving people’s nutri- as well as the persistence of conflicts estimated to date. In order to limit global tional habits are three important pillars and economic crises in many regions of warming and avoid the negative effects, Recent studies have indeed estimated that for sustainable development of the food the world. “rapid, far-reaching and unprecedented 30% of the energy consumed globally can sector. changes at all levels of society will need to be attributed to the agricultural and food In 2018, the number of people suffering be made”1.2 sector, which produces around 20% of the Today malnutrition, lack of nutrients and from malnutrition reached 821 million Changes that require greater attention, world’s greenhouse gas emissions.3 obesity are the three main forms of mal- (one in nine people). considering that global climate changes nutrition that affect the lives of millions of people around the world. Global trends On the other hand, 2.1 billion people are linked to malnutrition are negative, with overweight or obese (three in ten peo- the number of people suffering from hun- ple) as a result of consuming high-calorie ger in the world growing again after a dec- foods containing high doses of fat, salt and ade of steady decline. added sugar.
This changing trend is a direct conse- As a consequence, in the United States quence of environmental and social fac- and Europe, Barilla’s main areas of opera- tors such as climate variability, which in- tion, around 60% of people are overweight fluences rainfall trends and agricultural and 30% are obese. The situation is bet- 1. IPCC 2018, comunicato stampa, http://www.ipcc.ch/pdf/session48/ pr_181008_P48_spm_en.pdf seasons, the occurrence of extreme cli- ter in Italy, where, thanks to the greater 2. The future of food and agriculture: Trends and challenges, FAO (http://www.fao.org/publications/fofa/en/) 3. The future of food and agriculture: Trends and challenges, FAO (http://www.fao.org/publications/fofa/en/) 38 39 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
food production is affected not only by tant impacts on the conservation of nat- ENERGY CONSUMED (%) greenhouse gas emissions but also by the ural habitats and the protection of the 30% intensive use of land for agricultural pur- Planet’s forest heritage. AGRICULTURAL poses and the consumption of water re- The search for new agricultural areas and PRODUCTION sources. Suffice to say that agriculture, the preparation of land for cultivation, with irrigation and the production of feed which currently occupies around 38% of for livestock and aquaculture, is the world’s the earth’s surface, have important reper- biggest user of water resources, drawing cussions on the deforestation of numer- around 70% of water used worldwide and ous areas of the Planet and on the con- 70% creating situations of water stress in many servation of natural resources and animal OTHER geographical areas6. species.7
Agricultural production also has impor-
GHG EMISSIONS (%) FOOD WASTE 20% AGRICULTURAL PRODUCTION Every year in the world around one third cies, inadequate agricultural practices of world food production, equal to about and antiquated preservation and pro- 1.3 billion tons, is wasted. cessing processes.8 Most food waste occurs at the time of Whenever food is wasted, the natural re- 80% consumption: at home and in the cater- sources and labour used to produce it OTHER ing sector. are also wasted. However, a considerable amount of Suffice to say that recent studies estimate waste also occurs during the cultivation, that 10% of the electricity consumed harvesting, storage and processing of globally is attributable to the production 9 Particularly in Europe, more than a quar- grams of CO2 per kilo of product, a meat- raw materials, mainly due to inefficien- of food that is subsequently wasted. ter of energy consumption is attributable based dish has 20 times more impact on to the cultivation and processing of food the climate. Most of these emissions are products, while in the United States, ag- concentrated in the agricultural phase. ricultural activities are estimated to con- Food choices made by consumers can tribute around 9% of total greenhouse gas therefore influence the entire food sup- emissions, standing at over 600 million ply chain, directing the food processing tons of CO2 equivalent.4 industry and consequently the world of 4. European Commission – “Energy use in the EU food sector: State of play and opportunities for improvement”, 2015. However, there are significant differences agriculture towards the processing of EPA– “Sources of Greenhouse Gas Emissions”. between the different types of food pro- raw materials with a lower impact on the 5. BCFN Doppia Piramide 2016 https://www.barillacfn.com/m/publications/doppiapiramide2016-futuro-piu-sostenibile-di- pende-da-noi.pdf 5 cessing: for example a pasta dish - from environment. 6. https://www.barillacfn.com/m/publications/fixingfood2018-italian-mar2019.pdf cultivating the wheat to cooking in the 7. The future of food and agriculture: Trends and challenges, FAO (http://www.fao.org/publications/fofa/en/) 8. The future of food and agriculture: Trends and challenges, FAO (http://www.fao.org/publications/fofa/en/) kitchen - involves the emission of 1,013 The “ecological” footprint associated with 9. World resource institute: SDG TARGET 12.3 ON FOOD LOSS AND WASTE: 2017 PROGRESS REPORT (https://champions123. org/2017-progress-report/) 40 41 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
5.2 CONSUMER GOODS SECTOR The network is led by a Management • guaranteeing the quality of food; Board that includes the CEOs of 52 pro- • guaranteeing the safety of food; ducers and retailers, including the Chair- • supporting the end consumer in adopt- man Guido Barilla. ing a health lifestyle; • improving the quality of the whole sup- The network focuses on four main areas ply chain from the field to the table. of interest: The Barilla Group operates in a sector Sector is therefore in a constant state of evo- characterised by the presence and active lution, based on the knowledge acquired involvement of an increasing number of over time by companies and consumers consumer and trade associations commit- through analyses, research and theoretical ted to the development of sustainable pro- elaborations which have led to the funda- curement practices, from an environmental mental awareness that manufacturers and and social standpoint, and to the promotion retailers have a key role to play in improving of healthy lifestyles. The Consumer Goods the wellbeing of people around the world.
THE CONSUMER GOODS FORUM
Among the various associations operat- • promoting the adoption of global prac- ing in the consumer goods sector, a key tices that do not harm free competition; role in the sustainable development of the • sharing industry best practices; market is played by The Consumer Goods • involving stakeholders and regional as- Forum (CGF), an international network of sociations in order to also represent players operating in the consumer goods their interests. sector. Its membership includes around 400 re- The network pursues the objective of en- tailers, producers, service providers and couraging the global adoption of commer- other stakeholders from over 70 countries, cial practices aimed at improving efficien- representing approximately 3,500 billion cy, as well as ensuring a positive change euros in sales and involving around 10 mil- for the benefit not only of the consumer lion workers, plus another 90 million if you but of the international community as a include the entire supply chain. whole. In particular, the network deals with: • encouraging debate among members in order to identify the areas of intervention;
42 43 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
OTHER COLLABORATIONS Cake and Pasta Industries Association) • IPO – International Pasta Organization Barilla also believes it is important to par- • AIIPA – Associazione italiana Industrie • ITALMOPA – Associazione Mugnai ticipate actively in numerous national and Prodotti Alimentari (Italian Food Prod- d’Italia (Italian Millers Association) international initiatives of fundamental im- In addition to the ongoing collaboration uct Industries Association) • SEMOULIERS portance, many of which have been estab- with the Consumer Goods Forum (CGF), • AIM – European Brands Association • UNAFPA lished for many years. the Barilla Group maintains important re- • CAOBISCO – Chocolate, Biscuits and • UNIONE ITALIANA FOOD – In addition to the initiatives promoted by lationships and a constant dialogue with Confectionery of Europe an association resulting from the International Food Information Admin- various industry associations, including: • Confindustria the merger between Aidepi and Aiipa istration Council (IFIC), the Nutrition Foun- • ECR – Efficient Consumer Response • SITOX – Italian Toxicologicy Associacion dation of Italy, and the American non-prof- • AIDEPI – Associazione delle Industrie • IBC – Industrie beni consumo (Con- • SAI Platform it organization Oldways, the Group is also del Dolce e della Pasta Italiane (Italian sumer Goods Industries) actively involved in:
SINCE PARTNER BARILLA’S INTEREST ACTIVITY Annual establishment of a Barilla working group dedicated to the Sharing the international perspective and International Life Sciences various Task Forces and participation in meetings and collaborative 1999 monitoring global trends on nutrition, health, Institute - ILSI research studies. Barilla in particular acts as Vice President of the food safety and the environment. process-related compounds and natural toxins task force. Società Chimica Italiana SCI (Italian Chemical Society) Gruppo Inter-Divisionale Keeping up-to-date with the topics of safety, Chimica Alimentare health and food quality, having the opportunity Regular attendance of meetings and workshops and preparation of official 2004 (Inter-divisional Food Chemistry to discuss these with university research documents. Involvement as a member of the Mass Spectrometry Division Council. Group);Divisioni spettrometria centres and other highly advanced food and di Massa e Chimica Analitica instrumentation companies. (Mass Spectrometry and Analytical Chemistry Divisions)
Ente Nazionale Italiano di Collaborating in the development of harmonised Member of the Agribusiness Committee and of Working Groups in the field Unificazione (UNI)[Italian and standardised methods and related official of Additives and contaminants in plastic and paper materials. National Standardisation Body] national standards. 2006 Collaborating in the development of harmonised European Committee for Member of the Working Groups on chemical testing methods related and standardised methods and related official Standardization (CEN) to paper materials, biotoxins and process contaminants. standards at European level. Italian section of the Food for Sharing the European perspective, to improve Regular participation in and organisation of meetings and workshops 2007 Life European Technology the transfer of knowledge and the wellbeing of and preparation of official documents. Platform consumers, improving their health and longevity. European scientific network working on whole grain research. Operates as a platform to discuss Participation in periodic meetings and involvement in the definition and Healthgrain Forum and propose definitions of “whole”, both for raw implementation of activities for the Technology and Nutrition groups. 2008 materials and for finished products. Italian section of the Plan Sharing the European perspective on priorities Participation in regular meetings. for the Future European in plant research and funding opportunities at Contribution to the production of official documents. Technology Platform national/European level. Involvement as a member of the Platform council.
44 45 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
SINCE PARTNER BARILLA’S INTEREST ACTIVITY Collaborating in and promoting research on International Society 2009 toxigenic fungi and mycotoxin contamination Regular participation in meetings and workshops. for Mycotoxicology - ISM in cereals, to improve food safety. Regular participation in meetings. Participating in the European debate to ensure KIC Food4Future FoodBest Involvement in the Regional Council. 2011 that food, nutrition and sustainability are topics consortium Contribution to the production of official documents. discussed in the KIC. Definition and promotion of the national/European framework of funding initiatives. Contributing to define research strategies for CL.A.N. Cluster Agrifood the Italian agri-food sector, interacting with the Involvement as a member of the Coordination Council. Nazionale (National Agrifood Ministry of Education, University and Research Contribution to establishing the strategic agenda and implementation plans. Cluster) (MIUR) participating in projects on nutrition and Direct involvement in the Safe&Smart food safety project. 2012 health, food safety and sustainability. UN Global Compact Sustainable Agriculture Participating in drafting the document on the Regular participation in meetings. Business Principles (Core principles of sustainable agriculture. Advisory Group) Finding new opportunities for using waste Regular participation in meetings. ASTER - “Simbiosi industriale” 2013 and production waste as secondary raw Supplying waste for testing. (Industrial Symbiosis) project materials for packaging or other uses. Testing of materials produced. Collaboration with suppliers and production consortia, including Morning Star, Developing standards shared by all the players Ingomar, Consorzio in the supply chain and monitoring their Participation in working groups for sharing good practices. 2014 Casalasco del Pomodoro, implementation with the aim of improving the Promotion of supply chain agreements. Emiliana Conserve, Cereal sustainability of the supply chains from which Funding of projects to accelerate the dissemination of good practices. Docks, Americo Coppini, the ingredients of the Barilla recipes come. Unigrà, Co.Pro.B, Italia Zuccheri, Barry Callebaut. Sharing methodologies and systems common to the whole sector for the fight against food fraud Involvement as member of the Management Board 2015 Food Integrity Network and adulteration within the framework of the and manager of the Industrial Integration working group. European Union-funded Food Integrity project.
Sharing methodologies and systems at international level and common to the whole sector for the joint development of innovative Involvement as member of the Management Board 2016 MyToolBox European Project solutions to effectively and efficiently address the and manager of the Post-Harvest Strategies working group. risk of mycotoxins within the framework of the European Union-funded Food Integrity project.
Developing smartphone-based detection and FoodSmartPhone European Involvement as a member of the Advisory Committee diagnostics systems for simplified on-site pre- Project and as an applied research partner. 2017 screening of quality and food safety parameters. Promoting knowledge of the principles underlying True Health Initiative Barilla plays the role of organisational member of the movement. a healthy and sustainable lifestyle and lifestyle.
46 47 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
In order to promote the joint develop- • International Association for Cereal Sci- ta and other carbohydrate-containing mate services able to minimize risks and ment of scientific research projects to ence and Technology (ICC) foods with a low glycaemic response on seize the opportunities associated with improve knowledge of nutrition and • Consejo Superior de Investigaciones reducing the post-prandial insulin and climate variability and climate change; product quality and safety, as well as Científicas - CSIC - Spain glycaemic response, on improving the • H2020 DIVERFARMING funded pro- to foster the transfer of skills and know- • Tulln University-Vienna risk profile associated with cardiovascu- ject in order to develop and test di- how between the academic world and • University of Wageningen lar diseases and on promoting people’s versified crop systems with low inputs the supply chain actors for the adoption • Cranfield University wellbeing in the long term; (rotations, multi-cropping and in- of best agronomic practices, Barilla has • Harper Adams University • continuous monitoring of glucose asso- ter-cropping), to increase productivity been collaborating for years with various • University of Prague ciated with pasta consumption in rela- and crop quality in conventional and universities and research centres around • Queen’s University Belfast tion to type 1 diabetes; organic agricultural systems; the world, including: • Singapore Institute for Clinical Sciences • weight of rye: effects of a diet rich in rye • project funded H2020 LCAFRUD for the • Università di Bologna on body weight control; evaluation of the results achieved by the • HORTA • Università della Tuscia • study and optimization of the mitiga- cereal farmers who have adopted the • Catholic University of Piacenza • Namik Kemal University (Turkey) tion of food contaminants in produc- granoduro.net® decision support sys- • University of Thessaly • CREA (Council for agricultural research tion processes; tem with respect to the ordinary man- • Bahri Dağdaş International Agricultural and analysis of the agricultural economy) • development of rapid analytical meth- agement of the crop Development of Research Institute di Konya ods to check food contaminants and the Carta del Mulino and evaluation of • University of Nord Dakota Various studies and research projects verify food authenticity; the environmental and economic ben- • University UC Davis have sprung from these collaborations, • development of support systems for efits for the farmers of common wheat; • University of Parma the main ones being: the decisions of durum wheat farmers • evaluation of the environmental im- • University of Naples, Federico II • in vitro and in vivo evaluation of the gly- in Italy, Greece and Turkey - MEDGOLG pacts of tomato industry in California. • Brown University caemic response to pasta and other car- funded project in order to contribute • University of Toronto bohydrate-rich products; to the resilience, sustainability and ef- • University of São Paulo • analysis of the sì.mediterraneo pro- ficiency of the European agri-food sys- • University of Uppsala gramme for the promotion of wellbeing tem through the development of cli- • Istituto Nazionale di Tumori di Milano in the Company; (National Cancer Institute, Milan) • comparison between different carbohy- • Parma Hospital drate-rich foods and the estimated ef- • VTT Technical Research Centre fects of their replacement on the risk of of Finland type 2 diabetes and cardiovascular and • Chalmers University of Technology, arteriosclerotic diseases in post-meno- Gothenburg pausal women; • Purdue University • measurement of glycaemic response to • Harvard University low glycaemic index products in Asia; • State University of Milan • study of the metabolic effects in healthy • The German Federal Institute for Risk subjects associated with the consump- Assessment (BfR) tion of bread produced with high amyl- • ENEA ose wheat; • CNR (Italian Research Council) • evaluation of the effectiveness of pas-
48 49 ENvIRONMENTal PYRaMID
LOW HIGH Sweets Beef Beef
Fish Cheese Cheese Eggs Poultry CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES Fish ENvIRONMENTal PYRaMID Pork Cookies Olive Oil Poultry LOW HIGH Sweets Beef CT a Dried Fruit Beef 5.3 THE BCFN FOUNDATION Legumes al IMP Eggs Fish Cheese Milk Cheese Eggs Yogurt Poultry Fish Pork Cookies Olive Oil Sweets Poultry ENvIRONMENT Yogurt CT a Dried Fruit Olive Oil RECOMMENDED CONSUMPTION Pasta Legumes
Dried Fruit al IMP Eggs Milk Cookies Yogurt Rice
Bread, Pasta, Milk Sweets Potatoes, Rice ENvIRONMENTYogurt Olive Oil RECOMMENDED CONSUMPTION Bread Pasta The Barilla Center for Food and Nutri- other BCFN studies, inspires the every- Dried Fruit Legumes Cookies Rice tion Foundation (BCFN) is an independ- day decisions of Barilla managers, steer- Bread, Pasta, Milk Potatoes, Rice Bread ent and multidisciplinary think tank that ing them towards making more sustaina- Legumes Potatoes Fruit Fruit Vegetables analyses the environmental, economic ble business choices. Vegetables Potatoes Fruit Fruit and social dimensions of food, inspiring Vegetables Vegetables HIGH LOW the Group’s activities every day. Each year, the BCFN Foundation organ- HIGH LOW FOOD PYRaMID BCFN FOuNDatION © 2015 ises the International Forum on Food FOOD PYRaMID BCFN FOuNDatION © 2015 By working with international experts and and Nutrition: an event that provides an BCFN FORUM scientists, the BCFN Foundation produc- opportunity for interdisciplinary discus- es scientific material aimed at analysing sions on matters related to nutrition and the complexity of current agro-food sys- sustainability. In 2018, the BCFN fora provided the opportunity to reward and promote the most significant tems and promoting solutions and good research projects: practices for achieving the Sustainable Milan, Brussels, New York: in 2018, the • BCFN YES, a competition for young researchers from all over the world who have developed Development Goals (SDGs) endorsed by BCFN Forum travelled to other important projects for a better balance between social and environmental sustainability. the United Nations in the 2030 Agenda. cities. The three events gathered togeth- er experts, international opinion makers • FOOD SUSTAINABILITY MEDIA AWARD, an international competition launched in partnership with the Thomson Reuters Foundation, designed to reward excellence in journalism as a This material includes the Double Pyr- and young researchers to share their means of talking about food sustainability. amid model, which highlights the very findings, scientific data and best practic- close link between two aspects of every es, with the aim of building a more sus- • FOOD SUSTAINABILITY INDEX, an index set up in collaboration with the Economist Intelligence Unit to promote awareness and knowledge of food sustainability, with a specific type of food: the nutritional value and tainable food model. focus on issues linked to agriculture, nutrition and food waste. This year also saw the FSI extended the environmental impact generated to 67 countries. at the different stages of the food supply The three BCFN fora aimed to identify chain. concrete, effective solutions to urgent • FOOD AND CITIES, a publication that aims to spread solutions adopting a holistic and inclusive approach.This publication aims to spread solutions and stimulate interest and commitment issues like the relationship between hun- to action, analysing concrete case studies studio of seven good practices in cities around the The foods with the lowest environmental ger and obesity, the correct use of nat- world. impact are also those recommended by ural resources, the reduction of food nutritionists for our health, while those waste, the promotion of sustainable di- • SU-EATABLE, a three-year project financed by the European Commission to show that changing eating habits at work and/or school is good for our health and good for the Planet. with a high environmental footprint ets, the environmental impact of farming should be consumed in moderation due and the effect of climate change. • MOOC (MASSIVE OPEN ONLINE COURSE) “SUSTAINABLE FOOD SYSTEMS: A to their effects on health. MEDITERRANEAN PERSPECTIVE”, a free online course organised in collaboration with As well as being disseminated to inter- the SDG Academy and SDSN Mediterranean, with the aim of providing an overview of the national stakeholders, this model, like challenges and opportunities of the agricultural sector globally, focusing in particular on the Mediterranean.
50 51 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
5.4 CONTRIBUTION DRASTICALLY REDUCING THE USE levels. This is causing serious desertifica- OF LAND AND NATURAL RESOURCES tion issues, with the consequent loss of 12 TO THE 2030 AGENDA million hectares of land each year. UNEP - the United Nations Environment Programme - estimates that we are al- Faced by this scenario, at the Paris Climate ready consuming the natural resources Conference (COP21) held in December of 1.7 planets to support our society and, 2015, 195 Countries adopted the first uni- On 25 September 2015, the 193 member particular focus on the link between cli- unless radical changes are made, we will versal agreement aimed at maintaining countries of the United Nations signed mate change, food production and devel- need 3 of them by 2050. the average increase in world temperature the 2030 Agenda for Sustainable Devel- opment. For this reason, a radical rethink The recent update on the analysis of the well below 2 °C compared to pre-indus- opment, a plan of 17 global goals, sup- of these systems is necessary, in order Planet’s ecological limits, conducted by trial levels and committing Countries to ported by 169 targets, set to end all the to develop ways to achieve the Agenda scientists at the Stockholm Resilience limiting the increase to 1.5 °C, in order to key challenges of the global scenario, like 2030 Goals. Centre, shows, among other things, how significantly reduce the risks and impacts for example hunger, poverty, access to ed- the incessant increase in land consump- of climate change. ucation, climate change, responsible use GUARANTEEING ACCESS TO FOOD tion for agricultural purposes is compro- of natural resources. FOR A GROWING POPULATION mising biodiversity and water quality. The Paris Accord also extended actions Today, 38% of the earth’s surface is used for to control the production of greenhouse Many of the challenges that the internation- According to the United Nations forecast, agriculture: forests, grasslands, swamps gases in agriculture to the food sector. It al community is facing are closely linked there are now 7.6 billion people in the world, and other types of ecosystems have been is therefore fundamental for the contain- to current food models, characterised by 1 in 9 of whom suffer from hunger, while converted into productive land, to the det- ment of global warming that sustainable production, distribution and consumption about 3 in 10 are obese or overweight. In riment of the variety of their characteristics agricultural practices are disseminated to systems that are putting a strain on the absolute terms, the malnourished are 821 life forms. It is expected that with the cur- contain greenhouse gas emissions relat- Planet’s limits and the equitable sharing of million, while 2.1 billion people eat more rent rates of natural ecosystem erosion, by ed to agricultural food production, which resources among people, as well as their than they actually need. In the coming 2050, over a quarter of the species living today contributes 14.6% of total EU emis- protection for future generations. years, food will need to be guaranteed for on Earth could become extinct. sions and 11.4% of Italian ones.11 a growing world population, currently ex- These considerations have brought the pected to reach 9.7 billion by 2050: with a LIMITING GLOBAL WARMING REDUCING WASTE theme of food to the centre of discus- large part of this population increase taking ALONG SUPPLY CHAINS sions on global sustainable growth, with place in Africa, Asia, America and Oceania.10 Due to human activity and the release into the atmosphere of excessive quan- Today about 1.3 billion tons of edible food, tities of polluting gases, a major part of equivalent to 1/3 of global production, which is due to agricultural activities, the are wasted due to inadequate production, temperature of the globe is increasing: storage and distribution processes or due according to the International Panel on to unsustainable consumption habits. Climate Change, at the current rate, the That is four times the amount needed to temperature will rise by between 3.7 and feed the number of people suffering from 4.8 °C by 2100, compared to pre-industrial malnutrition around the world.
10. http://www.fao.org/3/I9553EN/i9553en.pdf - http://www.who.int/mediacentre/factsheets/fs311/en/ https://www.un.org/development/desa/en/news/population/world-population-prospects-2017.html 11. https://www.istat.it/it/files/2018/07/SDGs.pdf 52 53 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
OUR MISSION impact of our products along the supply- ther, reducing the remaining emissions chain. Since 2010, we have been work- through offsetting programmes. Finally, ing to reduce water consumption in our we have worked closely with our stra- As a world leader in food production, it is In pursuit of our Mission, we intend to production processes, achieving a 21% tegic supply chain operators to develop our duty to make a tangible contribution invest in four dimensions: reduction, and to cut CO2 emissions, and disseminate the use of more sustain- to tackling the numerous social and en- • increasing the value of our brands, in which we have reduced by 30%. able agricultural practices. vironmental challenges that characterise other words, their distinctive nature Two of our brands have gone a step fur- the global scenario today. Over the years, and the emotional bond they form with we have outlined a journey, summed up people; in the Good for You, Good for the Planet Mission, which drives us, step by step, to • providing products of superior quality, bring the world food that is good, healthy also from a nutritional point of view; and sourced from responsible supply chains, inspired by the Italian lifestyle and • enhancing the sustainability and trans- the Mediterranean diet. parency of our supply chains, from field to fork; This commitment translates into three benefits for the wider society: • incentivizing an entrepreneurial spirit among Barilla People. • GOOD FOOD means gastronomy, fla- vour, culinary experience, accessibility, To this end, we have been working to offer pleasure and conviviality. people products with a better nutritional profile, based on the Mediterranean diet • HEALTHY FOOD means selected raw model. Since 2010, we have reformulat- materials, clean, safe recipes and bal- ed 420 existing recipes, reducing the salt, anced nutritional profiles to support sugar, fats and saturated fats content. healthy lifestyles. We have gradually expanded our offering, • FOOD SOURCED FROM RESPONSIBLE increasing the range of products that are “We bring to the world SUPPLY CHAINS means seeking the rich in fibre or made from legumes, with best ingredients anywhere in the world no added sugar or with less salt, fats and JOYFUL, WHOLESOME to guarantee excellent quality, in a way saturated fats. Lastly, we have worked to that is sustainable and respectful of increase the transparency and availability and HONEST FOOD, people, animals and the environment. of information for people, seeking to give them the means to make more informed, inspired by the ITALIAN It is a Mission that we continue to pursue responsible choices and inspire them to from field to fork. choose a healthy lifestyle. From an environmental point of view, we LIFESTYLE and the have stepped up our efforts toreduce the MEDITERRANEAN DIET” 54 55 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5
GOOD FOR YOU, This is Barilla’s Mission: to make sure that from FIELD TO FORK our GOOD FOR THE PLANET products deliver goodness in the short and long run. The immediate impact comes from the flavour, which should be joyous and pleasing. The next phase is the energy that nutritional food gives you, and the long-term impact comes from the WELLBEING FOR THE PEOPLE and the PLANET.
HEALTH AND NUTRITIONAL WELLBEING PROFILE
PLANET JOY OF WELLBEING EATING
RAW CONSUMPTION MATERIALS
RESEARCH AND COMMUNICATION DEVELOPMENT PRODUCTION LOGISTICS AND SALES
56 57 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES Barilla has defined measurable goalsHOW for WEthe RESPOND years toTO GLOBALcome, CHALLENGESthat will be | CHAPTER updated 5 year by year to give a contribution to the UNITED NATIONS 2030 AGENDA OUR 2030 AGENDA and to the SUSTAINABLE DEVELOPMENT GOALS (SDGs).
GOOD FOR YOU GOOD FOR THE PLANET By 2030, Barilla will be promoting the best products and nutritional models, inspired by By 2030, Barilla will improve the sustainability of its products, by responsibly managing the Mediterranean diet, to enhance people’s wellbeing through leisure experiences.. all processes, from field to fork, and ensuring traceability and transparency.
AREA GOAL 2018 AREA GOAL 2018
SELECTED RAW By 2030, 100% of RAW MATERIALS SUPPLIERS 82% SUSTAINABLE By 2020 responsibly purchase of 100% 46% MATERIALS to be certified to an international food safety AGRICULTURE STRATEGIC RAW MATERIALS, in line with standard recognized by the Global Food Safety the BARILLA CODE OF SUSTAINABLE Initiative (GFSI). AGRICULTURE. Of which: Durum Wheat 39% SAFE By 2020, 100% of PRODUCT VOLUMES to be 99.4% Semolina 61% PRODUCTS aligned with the most advanced quality and food Tomato 94% safety standards. Cocoa 27% 100% Sunflower oil 86% By 2020, 100% of BARILLA PLANTS TO Flour 46% BE CERTIFIED to the international food safety standard FSCC 22000. SUSTAINABLE By 2020, reduce CO2 EMISSIONS per tonne -30% PRODUCTION of product by 30% compared with 2010. IMPROVED By 2020, 90% OF THE TOTAL VOLUME OF 86% NUTRITIONAL PRODUCTS to be in line with BARILLA By 2020, reduce WATER CONSUMPTION per -21% PROFILES NUTRITIONAL GUIDELINES. tonne of product by 30% compared with 2010. By 2030, ensure that 85% of BAKERY PRODUCTS 70% By 2020, ensure that 100% OF PACKAGING 99.4% sold in single portions contain no more than 150 RECYCLABILITY is responsibly purchased, in line with the Kcal. AND WASTE BARILLA GLOBAL PACKAGING POLICY. 11.3% By 2030, ensure that “better for you” products, By 2020, achieve the TARGET of ZERO WASTE <10% such as wholegrain, high-fiber and high-protein TO LANDFILL at our plants. items, account for at least 30% of BARILLA TOTAL VOLUMES. TRACEABILITY AND By 2030, at least 90% of PRODUCT VOLUMES 65% TRANSPARENCY TRACED by single sales unit. MARKETING We undertake to ensure that all our marketing Barilla RESPONSABILE and communication activities comply with Responsible the BARILLA RESPONSIBLE MARKETING Marketing PRINCIPLES so as to: Principles By 2020, purchase 100% of eggs and meat with Eggs 94% published on ANIMAL high levels of animal welfare. Meat 100% 1) Promote food as a positive daily habit. the Group AND SOCIAL 2) Pay particular attention to children as a website. WELFARE Reach level 2 of the Business Benchmark on level 3 sensitive target. Farm Animal Welfare (BBFAW). 3) Promote and support healthy lifestyles. By 2020, at least 10,000 FARMERS involved in 3,000+ 4) Make responsible use of people’s digital data. the Barilla Sustainable Agriculture Program.
58 59 CHAPTER 5 | HOW WE RESPOND TO GLOBAL CHALLENGES HOW WE RESPOND TO GLOBAL CHALLENGES | CHAPTER 5 5.5 DISCOVER OUR BRANDS
3,000 farming We have introcuced 28 companies involved products with a better in sustainable nutritional profile in the agriculture projects pasta and sauce category
Every Barilla Group brand contributes Pan di Stelle has been working since 2015 to the Good for You, Good for the Plan- to source better cocoa and to improve the et Mission through projects aimed at im- quality of life of farmers in Ivory Coast. proving the nutritional profile of products, In 2018, it transformed its commitment We have launched We have defined strengthening the sustainability of supply into the story of little Nyma. 10 products with 1 charter for the chains and communicating transparently an improved sustainable cultivation with consumers. And from this year our crispbread brand, nutritional profile of common wheat: Wasa, has established a clear commitment ”Carta del Mulino” Over the years, our products have found to help the Planet, offsetting its remaining their way into millions of homes, where CO2 emissions. they are enjoyed throughout the day. This is what we want to continue doing: offer- Harrys, our brand of bread and bakery ing people quality, safe, enjoyable and sus- products in France, has been commit- tainable gastronomic experiences through ted to making the common wheat supply 100% of cocoa We have supported our brands. But it also means that we aim to chain more sustainable and promoting the purchased supports the construction of continue doing more to share our positive welfare of farmers and the environment. Cocoa Horizons 1 well, providing clean social and environmental impact with con- Foundation projects water to 7,000 people sumers through actions that are universally We have achieved so much already, and recognised as a sustainable development countless milestones we want to reach, model. which contribute every day to our shared wellbeing and that of the environment. In Italy, Barilla has started a journey of dis- We are a 100% CO2 99% of our packaging covery, exploring the Origini della Bontà compensated brand is recyclable (The Origins of Goodness), plus a digital platform, guardatustesso (see for yourself), which invites people to discover more about our pasta and sauce supply chains.
Mulino Bianco in 2019 has launched the new “Carta del Mulino” a charter for more respon- We have launched We have involved sible agriculture, plus the first product made 3 products with a 183 farmers in a with 100% sustainable flour: Buongrano. better nutritional more sustainable profile supply chain
60 61 RESPONSIBLECHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6 STRATEGY
6.1 Materiality analysis 6.2 Global Goals and Barilla 6.3 Stakeholder engagement
62 63 CHAPTER 6 | RESPONSIBLE STRATEGY MATERIALITY MATRIX
6.1 MATERIALITY ANALYSIS MUST HAVE DISTINCTIVE
5,00 Traceability and Trasparency In accordance with the requirements of Priority was then given to aspects identi- Raw materials selected the GRI Standards and industry best prac- fied by the representatives of Barilla’s in- 4,50 Innovation and quality tice, Barilla defined its own materiality ternal functions, as the spokesmen and for food safety analysis to identify strategic social and women of the Group’s vision, and emerg- Excellent recipes environmental priorities in line with its ing from the Food & Sustainability survey for superior flavour 4,00 Wellfare of people and animals strategy and the United Nations Sustain- by GFK, which, based on its authoritative- Perfect nutritional profile able Development Goals. ness and knowledge of the food sector, Promotion of healthy life styles and Diversity and Inclusion provides the original and innovative points nutritional education 3,50 As a result of this process, the Group of views of a diversified sample of stake- “Modern” foods trend Sustainable identified as being material aspects those holders outside the Group. agriculture Human rights that have a significant impact on Barilla’s Care of local communities 3,00 economic, social and environmental per- The matrix was analysed and approved and the local area Recyclability and formance and that could substantially by the Good for You, Good for the Planet food waste influence the assessments and decisions Board. The following 16 themes emerged 2,50 Responsible marketing of stakeholders. from the analysis: People labelling care The analysis was carried out in 2017, with the support of a specialised company, in 2,00 a multi-stage process. To begin with, all the potential material aspects were identified for Barilla by ana- 1,50 Sustainable production sites lysing company documentation (includ- and health and safety ing the Code of Ethics and the Strategic
Plan), external documents related to top- 1,00 ics considered by consumer associations and trade associations (for example The
Consumer Goods Forum), a comparison 0,50 with the food sector and companies sim- ilar to Barilla in terms of governance and size, and multi-stakeholder initiatives. 0 0 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00
64 65 CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6
MATERIAL THEME DEFINITION MATERIAL THEME DEFINITION
Selecting only excellent raw materials, Meeting the new nutritional needs of produced according to the highest “Modern” food trends people through products that respond to Raw materials selected quality standards and in compliance with emerging trends in the food sector. the principles of sustainable agriculture promoted by Barilla. Promoting the adoption of sustainable agricultural practices along Barilla supply Sustainable agriculture Ensuring product traceability and chains, with respect for people, the the development of transparent environment and local communities. Traceability and Transparency communication projects to allow consumers to discover and learn about Barilla's world from the field to the table. Respecting the fundamental rights of Human rights every person to carry out their activities Guaranteeing the quality and safety of and along the entire supply chain. products every day, from the control of Innovation and quality for food safety raw materials, through production and Limiting the waste of resources at every distribution, to people’s tables. level of the food chain by optimising Recyclability and food waste production processes and promoting Formulating ever new and surprising responsible consumption practices. Excellent recipes for superior flavour recipes, able to bring the joy of food to the table of people who choose Barilla. Supporting the development and wellbeing of local communities and Safeguarding the wellbeing of all the Care of local communities promoting access to food and food people who work in the Group's supply and the local area security, particularly by providing aid to Welfare of people and animals chains and promoting the adoption of people affected by natural disasters or responsible breeding practices along the economic and social crises. supply chain.
Ensuring the accuracy of the information Developing healthy and balanced provided on the label in accordance with products in terms of nutrition, in line with international and national regulations Perfect nutritional profile Responsible marketing labelling the principles of the Mediterranean diet and developing responsible marketing and the Italian lifestyle. principles, applying them to all brand communications. Developing the value of each person, respecting their physical, cultural and Promoting the development of a work Diversity and inclusion moral integrity as well as the right to People Care environment that respects the balance interact and associate with others. between private and professional life.
Creating state-of-the-art production sites, Promoting the spread of sustainable and Promotion of healthy lifestyles Sustainable production sites with an ever lower environmental impact balanced lifestyles and proper nutrition, and nutritional education and health and safety and careful to ensure the health and especially among young people. safety of the people who work there.
66 67 CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6
6.2 GLOBAL GOALS AND BARILLA Barilla is committed to making its own impact on the various goals of the Global contribution to achieving the Sustaina- Agenda. The result of this activity, shown ble Development Goals (SDGs). As a first in the table below, highlights the priorities step, Barilla highlighted the link that ex- on which Barilla will invest in the coming ists between the priority themes identified years and through it which it will contrib- through the materiality analysis and their ute to sustainable development.
Raw materials selected
Traceability and Transparency
Innovation and quality for food safety
Excellent recipes for superior flavour
Welfare of people and animals
Perfect nutritional profile
Diversity and inclusion
Promotion of healthy lifestyles and nutritional education
“Modern” food trends
Sustainable agriculture
Human rights
Recyclability and food waste
Care of local communities and the local area
Responsible marketing labelling
People Care
Sustainable production sites and health and safety
68 69 CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6
BARILLA’S CONTRIBUTION TO THE 2030 AGENDA
• Since 2010, we have reformulated the recipes of • We have involved more than 3,000 FARMERS in 420 PRODUCTS REDUCING THE QUANTITY of FATS, SUSTAINABLE AGRICULTURE PROJECTS for our key SATURATED FATS, SALT and SUGAR or INCREASING raw materials. the FIBER CONTENT. • We have publicly committed to ELIMINATE ANY TEST • In 2018 we introduced 21 NEW PRODUCTS WHICH of RAW MATERIALS or PRODUCTS on ANIMALS. CONTAIN NO ADDED SUGAR and ARE WHOLEGRAIN • We have developed a GUIDELINE for the or WITH A HIGHER CONTENT OF FIBER. SUSTAINABLE CULTIVATION of COMMON WHEAT, • We have REMOVED PALM OIL from 100% of our together with WWF Italy, and launched the first PRODUCTS. product with 100% sustainable flour: BUONGRANO. • HARRYS has launched the PROJECT “MOELLEUX & RESPONSABLE” to MANAGE the COMMON WHEAT • We have engaged MORE THAN 18,000 CHILDREN SUPPLY CHAIN in a MORE SUSTAINABLE WAY. in ACTIVITIES dedicated to FOOD and PHYSICAL EDUCATION, and HEALTHIER LIFESTYLES. • We have supported the construction of a SCHOOL for more than 300 children in Ivory Coast. • Since 2010 we have REDUCED the CO2 EMISSIONS by 30% and the WATER CONSUMPTION by 21% in our • 36% of our EXECUTIVES and MANAGERS are WOMEN. plants, for each tonne of finished product. • 99.4% of our PACKAGING is RECYCLABLE. • WASA is the FIRST CO2 COMPENSATED BRAND of the Group.
• Over the years, we have developed PROJECTS to make our working environment more inclusive, to safeguard our wellbeing and the work-private life balance: e.g. smartworking and winparenting. • We have PROMOTED the CREATION and the OVER THE YEARS WE HAVE DEVELOPED PROJECTS EMPOWERMENT of 12 ERG (Employee Resource AND CREATED COLLABORATIONS WITH OUR STA- Group): group of interests of our People focused on KEHOLDERS AND THE ACTORS OF THE SUPPLY CHAIN. specific diversities. • We have developed PROJECTS and INITIATIVES for TRAINING and EMPLOYING REFUGEES, involving 50 PEOPLE. CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6 6.3 STAKEHOLDER ENGAGEMENT
Local authorities and public bodies, schools, citizens LOCAL and civil society where Barilla has production facilities COMMUNITIES and offices or where the Group's suppliers are located; beneficiaries of philanthropic activities.
Barilla maintains an active dialogue with growth path, thus measuring the actual Non-governmental organisations involved in its stakeholders, based on the principles ability to generate value for the greatest NON-PROFIT dealing with major global crises and emergencies, of absolute correctness, collaboration and possible number of stakeholders. ORGANISATIONS environmental associations, associations committed to reducing food waste and supporting the needy. mutual respect. A dialogue that over the years has become a fundamental part of The essential starting point for making an the Group’s way of doing business. inclusive and effective comparison is to Parliaments, Ministries and Authorities which - at national and international level - regulate farming and Through continuous dialogue with those recognise the multitude of interests and NATIONAL AND production activities, monitor food security, public health involved in the Company’s activities, Ba- groups in respect of which Barilla has a INTERNATIONAL and environmental protection, promote research and rilla is committed to providing answers to responsibility. INSTITUTIONS education or manage major global emergencies, including the expectations of those who support its the European Commission, European Parliament, EFSA, FAO, UNICEF, UNHCR and the UN.
Personnel in all departments and roles, new employees Scientific food and nutrition societies, medical and those close to retirement, people with disabilities, LGBTI BARILLA PEOPLE SCIENTIFIC associations, universities, scientific foundations staff, trade union representatives and organisations including, COMMUNITY and research centres involved in the development at European level, EFFAT, clubs and staff associations. of more sustainable agri-food systems.
SHAREHOLDES AND Shareholders who own shares in the Company Social networks, blogs and websites of digital information, and entities that finance the development LENDERS MEDIA press and television at local, national and international level, of the Group through capital loans. specialised trade and food sector press.
Modern distribution, traditional distribution, new distribution Food sector and major brand trade associations, including CUSTOMERS channels, commercial and collective catering. AIIPA, AIDEPI, ITALMOPA, CENTROMARCA, IBC in Italy, and UNAFPA and IPO, CAOBISCO, SEMOULIERS, AIM, TRADE ECR EUROPE internationally; associations of agricultural producers and inter-professional associations, employers' Children, adults, the elderly, people with specific nutritional ASSOCIATIONS CONSUMERS associations and organisations that bring together joint- needs due to health, religious or ethical-cultural reasons. stock companies - in particular ASSONIME, professional committees, associations in the logistics and commercial Suppliers of raw materials, particularly agricultural communication sector - in particular UPA. businesses and consortia, suppliers of packaging, co-packers, suppliers of goods and services required SUPPLIERS for production (such as utilities, plants, maintenance Direct competitors in the same industry (pasta, services) and for product distribution (such as sales COMPETITORS baked goods, sauces), direct competitors in agents, advertising and communication agencies, the food industry and indirect competitors. media buying agencies), professional service providers.
72 73 CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6
BARILLA INSIEME DAY
A fundamental pillar of stakeholder en- • guiding consumer choice in food to- gagement is the Barilla Insieme Day, an wards sustainable diets; annual event organised by the Group • guaranteeing people access to healthy aimed at building a constructive dialogue and inexpensive food. with all its stakeholders, discovering and assessing with them the most significant TRANSPARENCY AND TRACEABILITY challenges in the agri-food sector, evalu- SINGAPORE ating the Group’s sustainability path and • reducing food waste; June 11th, 2018 promoting new collaborations. • responding to the inefficiencies of the current food system; The tenth Barilla Insieme Day was held on • combating food fraud; 11 June 2018 in Singapore. The event was • guaranteeing food traceability; attended by over 80 academics, research- • combating any form of illegal and ers, representatives of international organ- forced labour in the supply chains; isations, commercial partners and supply • promoting the adoption of new sustain- chains. able packaging solutions.
This Barilla Insieme Day was another op- The message that emerged from this day portunity for the Group to discuss various of discussion is that two main actions need topics such as: nutrition, food wellbeing, to be implemented in order to respond to transparency and traceability of raw ma- these critical issues: promoting the creation terials. For each of the topics addressed, of solid collaborations dedicated to sus- challenges and critical issues emerged that tainable development of the food sector; the food sector is required to respond to, in spreading a general culture of economic, particular: social and environmental sustainability.
NUTRITION AND FOOD WELLBEING
• dealing with the food paradox that sees an increasing number of undernour- ished people coexisting with the growth of obesity cases worldwide; • promoting food education, particularly among young people; • promoting common labelling legisla-
tion for food products; In collaboration with
74 75 CHAPTER 6 | RESPONSIBLE STRATEGY RESPONSIBLE STRATEGY | CHAPTER 6
ACTION TAKEN TO LISTEN TO CONSUMERS
The Group holds direct discussions such as the telephone, and promoting reports, congratulations, suggestions On the other hand, the number of re- with the people who choose its prod- the growth of digital tools, such as cor- and requests for information on the ports of dissatisfaction from people is ucts every day. porate websites and social media. products and the Company. decreasing compared to the previous year, confirming Barilla’s constant atten- In order to ensure a close relationship In order to guarantee maximum con- The Group carried out an in-depth anal- tion and commitment to developing and with these people and fully understand sumer satisfaction, Barilla also carries out ysis of 28,000 reports from consumers improving the quality of its products. their needs and expectations, Barilla numerous surveys into the effectiveness regarding products and packaging. By has increased its points of contact with of promotional campaigns, new product activating new listening channels and consumers over the years. In particular, launch activities and people’s consump- strengthening existing ones, Barilla is able new listening channels continued to be tion habits. to handle a greater number of enquiries developed in 2018 in the various areas from consumers compared to 2017, par- of the world where Group operates, us- In 2018, Barilla received more than ticularly in response to requests for infor- ing traditional communication channels, 130,000 contacts worldwide, including mation on promotional initiatives.
REASONS OF CONTACT BY CONSUMERS - 2017 REASONS OF CONTACT BY CONSUMERS - 2018
2% 2% 3% OTHER REASONS FOR INFORMATION ON FOR INFORMATION ON NUTRITIONAL ISSUES NUTRITIONAL ISSUES 6% OR FOOD SAFETY OR FOOD SAFETY FOR INFORMATION 36% ON THE COMPANY FOR INFORMATION 43% ON PROMOTIONS FOR INFORMATION ON PROMOTIONS 7% 7% FOR INFORMATION OTHER REASONS ON THE COMPANY
28% 24% FOR INFORMATION 20% TO EXPRESS LACK ADVICE OR COMPLIMENTS TO EXPRESS LACK 22% OF SATISFACTION OF SATISFACTION FOR INFORMATION ADVICE OR COMPLIMENTS
76 77 GOODCHAPTER 7 | GOOD FOR FOR YOU YOU GOOD FOR YOU | CHAPTER 7
7.1 Nutrition 7.2 Food quality and safety 7.3 Responsible marketing 7.4 Food education
78 79 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7 7.1 NUTRITION HEALTH AND WELLBEING ADVISORY BOARD
The Health and Wellbeing Advisory Board is the group of international experts that is guiding and will continue to Barilla strives every day to bring people Guidelines, a set of rules and principles guide Barilla in the coming years in understanding and high quality products that combine ex- designed to guide continuous product im- promoting correct lifestyles, moving forward from the cellent flavour with a balanced nutritional provement and the launch of new recipes Nutrition Advisory Board, which has focused since 2004 profile, promoting the spread of healthy that promote people’s wellbeing through on the “nutritional” evolution of the Group’s product and sustainable diets. In order to effec- healthy lifestyles and proper nutrition. range. The Health and Wellbeing Advisory Board in tively pursue its Mission, over the years the fact supports Barilla in defining health and wellness Group has defined the Barilla Nutritional strategies, in order to have a complete perspective of people’s needs for a healthy life.
BARILLA NUTRITIONAL GUIDELINES
The Barilla Nutritional Guidelines out- In the process of updating the Guidelines, • BETTER FOR YOU: products reformu- ucts by the score assigned to the family line the criteria and reference values with Barilla’s Nutrition Unit was actively support- lated based on the Nutritional Guide- to which they belong. which Barilla abides in the development ed by the Health and Wellbeing Advisory lines and new products with one or and improvement of its products, in par- Board, a consultative body of international more nutrients improved compared to ticular as regards total fat, saturated fat, experts in nutrition and in various fields of the category average. salt, sugar and fiber content, as well as in medicine that supports the Company with Performance relation to calorie intake of monoportions. nutritional research. • GOOD FOR YOU: products fully com- 2017 2018 To assess the effectiveness of programmes pliant with the requirements estab- of the Barilla The Group is also careful to align its prod- to improve the nutritional profile of prod- lished by the Guidelines. Nutrition 93.5 93.5 ucts with the most recent studies in terms ucts and ensure the correct application of Index of people’s nutrition and wellbeing. For Nutritional Guidelines, the Group has es- Depending on their category, prod- this reason, during 2018, Barilla updated tablished the Barilla Nutrition Index. ucts are given a score of between of 0 the Nutritional Guidelines based on inter- Thanks to this indicator, Barilla is able to for products classified as Joy for You to Products in line with Barilla nationally defined recommendations for a classify its product portfolio into three a maximum of 1.25 for products in the Nutritional Guidelines proper diet, including the Dietary Guidance categories: Good for You category, which have been for Americans, the Livelli di Assunzione di reformulated to further improve their nu- 2016 2017 2018 Riferimento di Nutrienti ed energia per la • JOY FOR YOU: tasty and satisfying tritional profile, even if they already fully popolazione italiana (LARN) and the rec- products that are also very rich in en- comply with the Guidelines. ommendations made by the World Health ergy, the use of which is recommend- The Barilla Nutrition Index is obtained by 86% 86% 86% Organization (WHO). ed in moderation. multiplying the sales volumes of the prod-
80 81 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7
BARILLA REFORMULATION PLANS recipes, the Group has also worked to re- duce the saturated fat and salt content of 8 products the products. In 2018, eight recipes were Over the course of the year, the Group Thanks to the activities carried out, the reformulated to reduce the saturated fat reformulated to reduce renewed its commitment to the Bet- Group has aligned 80% of its products component and 13 to reduce salt. the total fat ter Nutrition project launched in 2009, in this category to the Barilla Nutrition- through which Barilla is committed both al Guidelines, which require sugar to ac- 13 products to developing and bringing to market count for 20% or less of the weight of a new healthy and tasty products and to portion of sweet products and 10 grams reformulated reformulating existing recipes to improve or less for single-portion products. to reduce salt their nutritional profile in line with the Barilla Nutritional Guidelines. The Group has also promoted the de- velopment of soft breads without added As part of the Better Nutrition project, sugar for the Italian and French markets. the Company has improved the nu- tritional profile of 420 products since Single-portion snacks and cakes have 2010, reducing their fat, salt and sugar had their portions reformulated. In this content and promoting an increase in regard, for example, Mulino Bianco has their wholegrain component. launched a new range of single-portion products that include gluten-free cocoa biscuits and other types of biscuits with Products reformulated no added sugar. 19 products were re- to improve the nutritional formulated in 2018 to reduce the added sugar content in the recipes, including profile sauces, breads and baked goods. 2016 2017 2018 Four additional products in the no added sugar version were reformulated, again 141 27 33 19 products In 2018, Barilla continued to implement reformulated the Sugar 2.0 programme aimed at refor- to reduce the added mulating various categories of products sugar content to reduce the sugar content in the recipes.
This commitment was focused in par- with the intention of further improving ticular on various initiatives aimed at de- their nutritional profile. veloping new recipes for classic biscuits. In addition to reducing the sugar in its
82 83 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7
NEW BARILLA PRODUCTS BARILLA LEGUME PASTA
Barilla is attentive to the wellbeing of On the twentieth World Pasta Day, Barilla presented its new range of legume-based consumers and consequently promotes pasta, created entirely with red lentil flour and chickpea flour. healthy and sustainable diets by constant- ly developing new products that respond Four new formats have been introduced: red lentils penne and fusilli, chickpeas caserec- to their numerous and diverse nutritional ce and rotini . The legume pasta represents a new range of products designed for all glu- and dietary needs. ten-intolerant people and for anyone seeking wellbeing and naturalness in food without giving up flavour. In fact, the new legume pasta shapes are naturally rich in proteins and Over the past few years, the Group has paid vegetable fibre and gluten-free. particular attention to expanding its range of wholegrain products by developing 17 Moreover, with these new products, Barilla is supporting the spread of sustainable ag- new recipes in the pasta, crispbread and ricultural practices, as legumes improve the natural fertility of the soil and have a low bakery products categories. carbon footprint since they require little fertiliser for their cultivation. Barilla’s attention to product innovation has also focused on developing new reci- Barilla products with red lentils and chickpeas are therefore fully in line with the Group’s pes designed for people who have chosen commitment to promoting a more ecological and sustainable food chain, from re- to adopt a vegan diet. In 2018, the Group sponsible agricultural practices to ensuring an informed choice for the customer at launched new pasta formats made with the point of sale. legume flour which, thanks to their high content of vegetable protein and fiber, are particularly suitable for people who have 3D PASTA chosen to adopt vegetarian or vegan diets.
Finally, Barilla continued its commitment Over the years, Barilla has embarked on an innovative path aimed at integrating the most to developing organic products made with modern digital technologies within its production processes. the best Italian durum wheat from organic farming, certified with the European Un- The Group was in fact the first manufacturer in the world, in the food sector, to carry out ion mark. In particular, during the year the research into new applications for 3D printers to produce pasta. Based on the research Group presented new ranges of organic work carried out and its collaboration with the Dutch Research Center TNO, Barilla de- products in the biscuit, bread, crispbread veloped the first 3D printer prototype in the world capable of producing fresh pasta, and sauce segments. using a mixture of durum wheat semolina and water.
This innovation allows unique pasta to be produced in innovative shapes and with new flavour, consistency and nutritional value characteristics, thanks to the use of ingredients such as vegetables, legumes and other whole grain flours.
84 85 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7
7.2 FOOD QUALITY AND SAFETY the cooking phase. In April 2018, in fact, ing risks, Barilla had already started a study new guidelines were issued in Europe de- and the appropriate mitigation actions. All fining the recommended concentration the Group’s products are well below the limits for this substance in food. Thanks to thresholds recommended by EFSA. its program for the prevention of emerg- In addition, the Group also focuses on identifying and monitoring potential Barilla works daily to bring consumers Around emerging risks, i.e. critical issues currently excellent products in terms of quality and 2,500 being studied in the scientific community food safety. The Group regards the pro- Over 4 million monitoring tests are and not yet regulated by law, in order to tection of personal safety as an essential tests are carried out every carried out by Barilla every implement preventive measures for their requirement for all its products. This is year on the main emerging mitigation. carefully monitored throughout all stag- year globally to monitor es of the production process, from the the quality and safety of risks in the food sector formulation of the recipes to final distri- Barilla products bution at the point of sale.
As a demonstration of this commitment, Moreover, for the purpose for managing QUALITY AND SAFETY OF RAW MATERIALS at Barilla 75 managers are dedicated every known risks regulated by the law and re- day to designing and improving the food sulting from chemical, biological, microbi- quality and safety system, a tool which ological and physical contaminants, Barilla Guaranteeing the food safety of its prod- on specific risk assessment activities and allows the Group to identify and prevent conforms to the HACCP method (Hazard ucts means first of all using safe and high internal reference standards, the Group any food risks associated with the prod- Analysis Critical Control Points), which pro- quality raw materials. The Group regu- draws up personalised monitoring plans ucts and make them safe for consumers. vides for the definition and management larly carries out checks along its entire for each ingredient included in its prod- Furthermore, the food quality and safety of critical control points in the production supply chains, both during the selection ucts. These plans are subsequently im- system guarantees Barilla the best man- process (CCP) that are fundamental to and approval of suppliers and when raw plemented by the Quality Control labo- agement of problematic issues, including guaranteeing the safety of food products. material lots reach the production sites. ratories within the production plants or known ones and those emerging along by qualified external laboratories. the entire food chain. Barilla has created an internal Thermal As a demonstration of this commitment, In order to guarantee effective manage- Process Authority unit responsible for every day, on average, a Company spe- To further protect the quality of raw ma- ment of food risks, the food quality and defining key parameters such as stabili- cialist visits a supplier to check that it is terials and products, Barilla promotes the safety system implemented by Barilla is sation time and temperature, which make operating in compliance with the ref- constant search for innovative analysis based on the Risk Assessment method, products that require the use of a thermal erence standards and to exchange the techniques to prevent the risks of food which provides the Company with tools process safe for processing. knowledge that has always characterised fraud and adulteration. and guidelines to identify, analyse and Furthermore, during the course of 2018, such partnerships. evaluate all possible risks related to food Barilla paid particular attention to the evo- In particular, with regard to durum safety and consequently to determine the lution of the regulatory scenario associat- Barilla is also aware that different types wheat, a key ingredient for pasta pro- necessary measures for their prevention ed with acrylamide, a chemical contami- of raw materials are exposed to different duction, Barilla has defined various pre- and management. nant that can potentially develop during types of food risk. For this reason, based vention and control activities along the
86 87 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7 entire supply chain, guaranteeing ever cedures and rules than imposed by cur- THE MYTOOLBOX PROJECT greater safety and product quality. rent legislation. Additionally, Barilla has For example, Barilla requires its suppliers developed a forecasting model that al- of durum wheat to respect the good ag- lows it to classify the cultivation areas As part of the Horizon 2020 programme, the European Union is funding the innovative in which the grain can be attacked by a MyToolBox project, dedicated to developing an online system capable of providing fungus that develops a mycotoxin called concrete decision-making support to the different actors in the food chain in order to deoxynivalenol (DON). Thanks to this reduce contamination by mycotoxins. MyToolBox involves 23 partners in 11 countries, Over 650,000 predictive system, the Group is able to including Barilla. In particular, the Group is an active member of the project Board and tests are carried out accurately establish the frequency of an- coordinates all activities related to the development of new post-harvest strategies globally every year to alytical checks for this mycotoxin, to be and tools for reducing food contamination from mycotoxins. carried out before buying the grain. After monitor the quality and the planning stage, with the support of safety of raw materials experts and approved external laborato- and packaging ries, Barilla carries out checks on all the lots coming in from the areas classified Barilla carries out more than 900 internal sector specialists, which supports compa- as being at risk. audits every year, which allow it to identify nies with establishing increasingly effective ronomic practices contained in the Ba- Finally, in all Barilla mills, durum wheat is potential areas of intervention to improve food safety management systems. The rilla wheat growing and storage rules, subjected to a rigorous food safety plan the quality and safety of food products. As FSSC22000 standard aims to ensure prod- which, among other things, requires which involves further tests being carried a guarantee of the quality of production uct safety and promotes a transparent and pesticides to be used only where strict- out for different risk factors and activities processes, all Barilla plants are certified ac- collaborative approach between the vari- ly necessary to protect crops against to search for traces of food contami- cording to the FSSC22000 standard, rec- ous operators in the supply chain. pests, according to more restrictive pro- nants in particular. ognised by the Global Food Safety Initia- tive, a non-profit foundation made up of
QUALITY OF PRODUCTION PROCESSES QUALITY AT THE POINT OF SALE
In addition to ensuring the safety of raw materials, Barilla guarantees the quality As mentioned, attention to quality and of products, as well as the service quality and excellence of all production process- 12 million euros food safety at Barilla covers the entire life standards with which the Group’s logistics es. For this reason, for several years now, spent during the year cycle of the products, including trans- partners must comply. The Group regu- the Group has adopted the Know-How port and display at the point of sale. In larly organises Food Values Days, events Manual, the Good Manufacturing Practic- globally for the ongoing order to protect product quality up to the dedicated to training distributors and rais- es, in which over 1,200 health and hygiene improvement of production point of sale, the Group has established ing their awareness about food quality requirements are defined with which the plants and production its Good Distribution Practices, a doc- and safety issues along the supply chain, environments, production premises and ument by which it monitors the quality which also include verification of the cor- facilities must comply, as well as basic hy- lines to ensure product of transport and distribution activities. rect application of Good Distribution Prac- giene rules for operators. In order to guar- quality and safety In particular, this manual contains 143 re- tices. In addition to these initiatives, dur- antee the quality of production processes, quirements for the storage and transport ing the year, the Quality and Food Safety
88 89 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7 department carried out checks on 3,480 ly, during the year the Group organised As regards the management of poten- of the problem and implement effective packages at the points of sale, with the specific technical tasting sessions which tial problematic issues, Barilla has set up solutions to safeguard consumer health. aim of verifying that the quality perceived made it possible to carry out over 174,000 a precise management system through During the year, the Group did not report by consumers is in line with the standards product quality checks. which it is able to promptly activate diag- any food issues and did not carry out any defined and implemented by Barilla. Last- nostic procedures to identify the causes product recalls.
PREVENTING FOOD FRAUD FOOD QUALITY AND SAFETY TRAINING AND MANAGING CRITICAL ISSUES FOR BARILLA PERSONNEL
The Group’s belief in protecting the exchange of information between com- Food quality and safety rely strongly on the technicians and sales staff from the vari- food safety of everyone who chooses its panies and authorities, in order to make experience and skills of Barilla People. For ous plants around the world took part in products every day is also reflected in fraudulent products on the market more this reason, the Company is committed the events, including those in Italy, France, the initiatives taken to fight food frauds. identifiable and consequently improve to ensuring constant training and aware- Greece, Brazil, Sweden and the USA. consumer trust regarding the integrity ness of its employees on the issues of Over the years, Barilla has created a struc- and quality of food. food quality and safety. tured system for the prevention and man- 7,500 people agement of frauds. This involves identi- During 2018 a shared database called the In 2018, Barilla again organised the Food fying any vulnerability along the entire Food Integrity Knowledge Base was com- Safety Days dedicated to disseminating a trained and made aware supply chain and planning the respective pleted, containing over 300 methods for culture of food quality and safety among of food quality management and mitigation actions. analysing and verifying the authenticity of all the Group’s employees. Over the course and safety issues globally food products. of the year, more than 500 operators, To support the management system, the Group has a Food Fraud Prevention Pro- Barilla is a member of the Food Integri- gramme, in which it works with its sup- ty Project Management Board and is the pliers to establish precise standards for coordinator of Work Package-10, which assessing the vulnerability of the supply aims to provide the European food in- chain with a view to preventing fraud and dustry with practical tools to manage sharing the risk. and prevent health and safety risks arising from fraud and food adulteration, as well For over 5 years, the Group has been as to analyse food chains, from raw mate- involved in the Food Integrity Project, rials to the finished product. which, through a collaboration between 60 partners from 20 different countries, In particular, Barilla’s activities during the aims to ensure and improve the quality year focused on creating and disseminat- and authenticity of food products. ing specific industrial guidelines through An integral part of the Food Integrity Pro- which to implement a general model for ject is the plan to reduce barriers to the the prevention of food fraud.
90 91 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7 TRAINING FOR PREVENTING INFESTATIONS 7.3 RESPONSIBLE MARKETING
During the year, Barilla continued training and awareness-raising activities aimed at preventing food infestations in areas where the climate presents a risk, such as Brazil, Turkey and the Asian regions. Barilla is fully aware of the influence that which apply to all of Barilla’s marketing its communication activities can have on activities and communications around people’s food choices and on the spread the world and were defined together BRAZIL TURKEY of balanced eating habits and healthy life- with UNICEF. styles. For this reason, the Group pro- In Brazil, activities aimed at disseminat- In Turkey, Barilla’s activities mainly in- motes the development of responsible In particular, these principles require all ing a culture of food safety continued, in- volved point-of-sale distribution process- communication to provide consumers marketing communications to respect the cluding through the involvement of com- es, with particular attention focused on with the right information to make in- central importance of people, provide mercial partners to disseminate a shared food preservation and infestation preven- formed consumption choices and un- transparent information and actively pro- infestation management process in points tion practices adopted. In particular, the derstand the importance of an active mote the adoption of healthy lifestyles. of sale. In particular, during 2018, Barilla Group plans to train the country’s largest lifestyle and a balanced diet. carried out 132 visits to different points of distributors on Good Distribution Practic- Furthermore, as part of its responsible sale in order to identify areas for improve- es. These training activities have allowed With this in mind, Barilla provides its cus- marketing principles, Barilla recognises ment in food storage practices. Addition- the Group to record a decrease in claims tomers with clear and transparent nu- that children are important stakehold- ally, Barilla involved 250 people in training for food infestation. tritional information on all products, ers and respects their universal rights activities on the subject of infestations. through brand activities, product packag- according to the definition contained in Thanks to these activities, during the year ASIA ing and the Group’s internet sites. For ex- the UN Convention on the Rights of the Barilla recorded a reduction in complaints ample, Barilla product packaging contains Child. For this reason, Barilla’s marketing in the distribution chain related to the in- In China, Taiwan and Hong Kong, Barilla tips for a healthy and balanced diet and communications are developed in the in- festation, during storage at the retailers. continued to train its distributors on how suggestions for the correct consumption terest of the child and respect their free- to prevent pests. of the products, with particular reference dom of expression, development, educa- Barilla also involved workers employed to the optimal quantities to be eaten and tion, leisure, health and wellbeing. in third-party call centres in training any indications on how to create meals activities to ensure that correct and that provide the correct amount of ener- The Group is also convinced that every professional answers are given to the gy and nutrients. child should have access to complete consumer. Important feedback on the and accurate information and enjoy an validity of this activity came from an in- As regards advertising and marketing ac- adequate right to privacy; Barilla therefore crease in customer satisfaction with call tivities, Barilla pays particular attention to prudently manages all marketing activities centre replies: plus 25% compared to the influence these can have on our con- aimed at children, avoiding any commu- the previous year. sumers, especially younger ones. For this nication that could expose children at risk reason, during the year, the Group issued of exploitation, manipulation and com- its Responsible marketing principles, modification.
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7.4 FOOD EDUCATION tion. In 2018, the summer campus was tunity to hand out the prizes to the Parma attended by 5,300 boys and girls aged schools that took part in the “Giocampus 5 to 13 years, overseen by a staff of 175. Insieme” programme. Moreover, Giocampus Estate involved about 275 secondary school students In recognition of the quality of the project, who, through the Giocampus Teen in September 2018, Giocampus received a programme for alternating school with special mention in the Nutrition and sus- One of the pillars of Barilla’s “Good for ucational and informational activities work, worked together to carry out nu- tainable diets category of the Milan Pact You, Good for the Planet” Mission is the for new generations and employees, merous recreational and educational Awards, an initiative designed to recognise food education of people, particularly through which it promotes healthy life- activities. the best projects carried out by the 177 cit- the youngest. styles, balanced eating habits and re- ies that signed the Pact for the urban food sponsible food consumption. Among • GIOCAMPUS NEVE (snow): a week in policy of Milan. Following this award, even In fact, the Group aims to disseminate the main projects promoted during the the snow, in which children have the the academic world, through the Obesity information and rules for a correct and year we would highlight the Giocampus opportunity to try out different winter Week Congress committee, scientifically sustainable diet among consumers. Ba- programme, the sì.mediterraneo plan sports and learn the basic rules of prop- recognised the commitment of Giocam- rilla is committed to developing ed- and the Vivi Smart initiative. er nutrition. Almost 500 children took pus to promoting good practices for the part in this initiative during the year. reduction of childhood obesity, awarding it the Obesity Week Award 2018. GIOCAMPUS Also as part of the project, the Giorno di Giocampus (Giocampus Day) event is or- Finally, Giocampus was presented during ganised, an opportunity for the city to par- the ninth edition of the International Food Giocampus is a project promoted by an further 2,200 in the other 7 municipali- ty, in which children and adults can come and Nutrition Forum of the Barilla Center educational alliance between the pub- ties that signed up to the project. together and discuss issues of inclusion for Food & Nutrition as a worldwide best lic and private sectors, dedicated to the and diversity. The 2018 event involved over practice to reduce childhood obesity and wellbeing of future generations. For the • GIOCAMPUS INSIEME (together): a 1,000 people and also provided an oppor- promote a healthy lifestyle. past 18 years, it has set itself the goal of pro- dedicated educational path dedicated moting healthy lifestyles through a unique to respect for diversity and disability, programme of physical and healthy eating which involved 115 children during the SI.MEDITERRANEO education for children between five and 14 school months and a further 64 young years old. The activities promoted by Gio- people during the summer event. Gio- campus during 2018 involved a variety of campus Insieme is based on the prin- Barilla’s focus on food education is ad- of Clinical and Experimental Medicine of social events, including: ciple that, through physical activity, all dressed not only to new generations but the University of Naples Federico II, with children can be included with their dif- also to all the people who work for the the contribution of the Barilla Heath&Well- • GIOCAMPUS SCUOLA (school): a spe- ferent abilities. Group. To this end, over the years the being Advisory Board, aims to increase cific path integrated with the school . Group has developed the sì.mediterraneo awareness among employees of the ben- curriculum that aims to teach a healthy • GIOCAMPUS ESTATE (summer): a project. efits of the Mediterranean diet and to im- and balanced lifestyle. During 2018, Gi- summer camp that offers children prove their eating habits every day. ocampus Scuola involved about 8,500 sports, movement and laboratory activ- This initiative, which stems from a collabo- Through the sì.mediterraneo project, Ba- children from the city of Parma and a ities as well as, of course, food educa- ration between Barilla and the Department rilla develops environmentally sustainable
94 95 CHAPTER 7 | GOOD FOR YOU GOOD FOR YOU | CHAPTER 7 and nutritionally balanced menus for its sheets for the creation of correct and bal- Tre University, has conducted research project increased their consumption employees, available every day in all the anced diets. The results of the experiments on changes in people’s eating habits re- of fruit and 13% of vegetables; company’s canteens. The menus offered carried out in the Parma canteens have sulting from better knowledge of the right • more children have decided to spend consist of wholegrain bread and pasta, a been published in the International Jour- nutritional styles and healthy lifestyles. In more time on physical activity, start- varied selection of cereals, vegetarian sal- nal of Food Science and Nutrition, “A nutri- particular, this study showed that: ing to play sports for at least four days ads and legumes, fish-based dishes and a tional intervention program for a worksite • 11% of the children who took part in a week. reduced selection of red meats and fried canteen to promote healthful inspired by the project started drinking more wa- foods. Thanks to this initiative, Barilla has the traditional Mediterranean diet”. ter during the day; seen a growing attention among employ- • 6% of the children who took part in the ees to more balanced diets, thanks to a significant increase in the consumption of wholegrain products and white meat, sì.mediterraneo and a significant reduction in orders has involved over for red meat. 7,300 employees Furthermore, through sì.mediterraneo, Barilla provides numerous studies and re- in 15 countries where the search papers concerning the benefits of Group has a presence. the Mediterranean diet and information
VIVI SMART
Since 2017, Barilla has been involved in in a daily programme that combines atten- the “ViviSmart” project, a partnership that tion to proper nutrition with physical exer- brings together Barilla, Danone Italy and cise. People therefore have the opportuni- Coop Italy, with their respective Foun- ty to learn about choosing food, knowing dations, with the collaboration of major their nutritional properties, as well as to food sector companies, consumer co- perform physical activities following a few operatives, non-profit foundations and simple rules. scientific research. The aim of the initia- tive is for people to adopt “smart” lifestyles, Since its launch in 2017, the initiative has i.e. characterised by informed nutritional involved 16 selected stores and 16 primary choices and aligned with the Mediterrane- schools in four different cities, include 80 an model and the food pyramid. teachers and over 1,500 children and fam- With an innovative multi-factor approach, ilies in its activities. Furthermore, LUMSA in selected points of sale and primary University, in collaboration with the Uni- schools, ViviSmart involves Italian families versity of Naples Partenope and the Roma
96 97 GOODCHAPTER 8 | GOOD FOR FOR THE PLANET GOOD FOR THE PLANET | CHAPTER 8 THE PLANET
8.1 Responsible supply chains 8.2 Protection of animal welfare 8.3 Management of packaging materials 8.4 Production
98 99 CHAPTER 8 | GOOD FOR THE PLANET GOOD FOR THE PLANET | CHAPTER 8
8.1 RESPONSIBLE SUPPLY CHAINS THE BARILLA SUSTAINABLE AGRICULTURE CODE
Barilla establishes direct and lasting work- thermore, all Barilla contracts with suppli- ing relationships with raw material suppli- ers are based on the explicit acceptance ers, based on dialogue and transparency, of the principles and values expressed in and defines clear requirements regarding the Group’s Code of Ethics. Barilla’s goal has always been to produce The rights of the people who operate in the excellent quality of raw materials and 3. PROMOTING FOOD HEALTH AND and offer people products that can pro- the supply chains and the impacts of pro- strict compliance with the ethical and sus- SAFETY: in order to guarantee the high mote healthy eating habits and help them duction on the environment and on ani- tainability principles that characterise the quality of its products, Barilla monitors live better, while reducing the impact of mal welfare are therefore fundamental pa- Group’s way of doing business. the risk profile of suppliers with regard its activities on the environment and the rameters used by Barilla Group to evaluate In particular, the Group’s commitment to to the food safety of raw materials. In community. It does this, not only by con- the risks related to more than 8,500 sup- creating a sustainable raw materials supply fact, all the ingredients used only come stantly improving the efficiency of produc- pliers with whom it had a commercial rela- chain is outlined in the Barilla Sustainable from suppliers who undergo regular food tion processes, but above all by developing tionship during the year and implemented Agriculture Code, a document that estab- health and safety assessment and certifi- sustainable supply chains from an econom- proper mitigation plans. lishes the principles for managing purchas- cation procedures. ic, social and environmental point of view. es according to sustainability criteria and 4. REDUCTION OF ENVIRONMENTAL guarantees proper relations with all the ac- IMPACTS: Barilla requires all suppliers to tors involved in the supply chain. This code fully respect the environment and nation- SUPPLIERS BY COUNTRY is based on five fundamental principles: al and international environmental laws. Furthermore, in order to monitor the im- 7% 1. SEEKING EFFICIENCY AND COMPET- pact of the supply chains, throughout the 7% TURKEY ITIVENESS IN THE PRODUCTION SYS- product life cycle, from the field to the TEM: for Barilla, the achievement of high table, the Group uses the LCA (Life Cycle RUSSIA levels of efficiency in agricultural practic- Assessment) methodology, measuring es is the starting point for the develop- greenhouse gas emissions (Carbon Foot- ment of a sustainable supply chain, as it print), water consumption (Virtual Water 12% allows the competitiveness of all the play- Content) and the use of natural resourc- USA 36% ers in the sector to be increased, while at es (Ecological Footprint). ITALY the same time reducing the negative im- 5. LISTENING AND WORKING TOGETH- pacts on the economy, the environment ER FOR CONTINUOUS DEVELOPMENT: 7% and society. the Group works with various stakehold- SWEDEN 2. PROTECTING BUSINESS INTEGRITY AND ers, including universities, NGOs, institu- ENFORCING THE CODE OF ETHICS: the tions and trade associations, to identify 7% Group favours the adoption of long-term emerging risks and opportunities in agri- GREECE contracts with its suppliers, guaranteeing culture. Barilla therefore intends to pro- 9% 15% stable earnings and promoting sustain- mote a shared development path in order able cultivation in terms of quality, food to achieve common benefits. GERMANY FRANCE safety and environmental impact. Fur-
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ANALYSIS OF THE ENVIRONMENTAL IMPACT OF PRODUCTS ENVIRONMENTAL IMPACT OF INGREDIENTS PURCHASED IN 2018 Virtual Water Carbon Footprint Ecological footprint Content In pursuing its commitment to constantly guarantee transparency regarding the en- kt CO2eq mm3 Global ha reducing its environmental footprint, Ba- vironmental impact of its products, Barilla Durum wheat 601 407 839 rilla regularly conducts an analysis of the publishes the results of the LCA analyses environmental impacts associated with the through Environmental Product Declara- Soft wheat 31 66 32 entire life cycle of its products using the tions (EPD), an international public anal- Rye 23 22 27 Life Cycle Assessment (LCA) methodology. ysis and communication tool compliant This method of analysis allows the en- with the ISO 14025 standard, which un- Sugarbeet 39 35 21 vironmental impacts to be assessed in dergoes verification by an independent Sunflower seed oil 104 125 94 terms of greenhouse gas emissions, wa- third party. Rapeseed oil 21 39 21 ter consumption and natural resources used, taking into consideration all stages Tomatoes 24 2 10 of the product’s life from the cultivation Eggs 105 69 58 of raw materials to consumption and the Cocoa 7 366 89 final disposal of the packaging. In order to 66 EPD published covering Beef 18 19 7 Pork 7 43 3 of volumes produced 71% 69% Fished fish 0 - 1 covered by the LCA analysis of 2018 production Animal fat 42 52 14 Dairy products 71 86 24 Total impacts 1,093 2,331 1,240 THE SUSTAINABLE AGRICULTURE PROJECT
SHARES OF RESPONSIBLY PURCHASED STRATEGIC The Barilla Sustainable Agriculture Code the share of raw materials purchases cul- RAW MATERIALS is applied through the Barilla Sustainable tivated in accordance with the principles Farming (BSF) programme, by means of stated in the Barilla Sustainable Agriculture STRATEGIC RAW which the Group supports and promotes Code from year to year. In particular, dur- MATERIALS RESPONSIBLY 40% 46% the adoption of sustainable and innova- ing 2018, the Group’s attention focused on PURCHASED tive agricultural practices in its strategic developing sustainable agriculture projects supply chains, as well as in those which by for the following supply chains: durum OTHER their nature present potential environmen- wheat, common wheat flour, other flours, 2017 2018 tal and social problems. cocoa, tomato and vegetable oils. The objective pursued by Barilla through 60% 54% this programme is therefore to increase
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STRATEGIC RAW MATERIALS RESPONSIBLY PURCHASED Tonnes selected from responsibly Share of purchases selected from Total tonnes purchased managed supply chains responsibly managed supply chains 2017 2018 2017 2018 2017 2018 t. t. % STRATEGIC RAW MATERIALS Durum wheat 1,188,000 1,084,000 417,977 434,312 35% 40% Durum wheat semolina 334,000 329,785 203,000 199,48 61% 60% Common wheat 81,151 80,971 10,200 17,400 13% 21% Common wheat flour 368,331 325,666 141,931 148,358 39% 46% Rye 58,006 64,445 - - - - Tomatoes 62,898 68,111 54,418 63,863 87% 94% Sunflower oil 35,613 39,257 15,488 33,880 43% 86% Rapeseed oil 8,030 8,950 - 4,500 - 50% Sugarbeet - 57,461 - 56,822 - 99% Eggs 24,668 24,684 23,144 23,103 94% 94% RAW MATERIALS FROM SUPPLY CHAINS WITH ENVIRONMENTAL AND SOCIAL ISSUES Sugar cane 1,063 1,497 1,063 1,497 100% 100% Cocoa 1,411 3,580 1,411 3,580 12% 27% Beef 723 753 723 753 100% 100% Pork 2,024 2,108 2,024 2,108 100% 100% Chicken 16 - 16 - 99% - Fished fish 73 68 73 68 100% 100% OTHER RAW MATERIALS OF ANIMAL ORIGIN Butter 7,208 7,592 - - - - Fresh milk 2,951 3,161 - 2,585 - 82% Dairy products 6,994 7,303 - 1,210 - 17%
Total 2,192,661 2,118,833 866,312 993,387 40% 46%
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DURUM WHEAT: A STRATEGIC RAW DURUM WHEAT PURCHASES MATERIAL FOR THE GROUP Total tonnes Tonnes purchased under cultivation Tonnes purchased from the local market Durum wheat represents for Barilla one purchased contracts of the main materials in terms of volumes t. t. % t. % used. It is of vital importance for the Group to 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 guarantee, throughout the supply chain, Italy 756,000 670,000 671,000 562,000 89% 84% 432,000 450,000 57% 67% the promotion of cultivation, conserva- tion and handling techniques that guaran- Greece 65,000 66,000 62,000 66,000 95% 100% 18,800 22,879 29% 35% tee the highest quality of the raw material, Turkey 139,000 135,000 127,000 133,000 91% 99% 0 0 0% 0% also making available specific instruments North and tools to the farmers. 228,000 213,000 228,000 213,000 100% 100% 0 0 0% 0% America From this vision and need arise, in the var- ious countries where Barilla operates, nu- Total 1,188,000 1,084,000 1,088,000 974,000 92% 90% 450,800 472,879 38% 44% merous projects aimed at spreading and developing tools and knowledge to support PURCHASES OF DURUM the responsible development of the durum WHEAT SEMOLINA wheat supply chain, based on respect for Total tonnes local peculiarities and on the promotion of Tonnes purchased from the local market purchased lasting collaborations with different suppli- ers and local scientific bodies. t. t. % 2017 2018 2017 2018 2017 2018
ITALY Italy 127,000 122,000 76,200 85,120 60% 70% North 90,000 85,880 90,000 85,880 100% 100% During 2018, Barilla maintained its com- America mitment to favour the Italian pasta sup- Mexico 78,000 78,280 78,000 78,280 100% 100% ply chain by promoting an increasingly strong and lasting collaboration with Russia 34,000 43,320 34,000 43,320 100% 100% durum wheat producers’ organizations. Total 329,000 329,480 278,200 292,600 85% 89% With this in mind, the Group signed an important agreement during the year with the Crédit Agricole financial institu- tion that will allow Barilla’s suppliers to receive direct loans, not only if they be- long to consortia or cooperatives, under competitive financial conditions. Thanks to this agreement, 5,000 farms will have the opportunity to access this form of fi- nance, which will foster local economic
106 107 CHAPTER 8 | GOOD FOR THE PLANET GOOD FOR THE PLANET | CHAPTER 8 development, strengthening and con- la works with various national and inter- PURCHASES OF DURUM WHEAT FROM ITALIAN FARMERS WHO USE THE GRANODURO.NET SYSTEM solidating the local production fabric national research organisations in devel- and collaboration between the farms oping new technologies and services to Number of growers and farm Tonnes of wheat grown and Barilla. provide valuable support to agricultural holdings that use granoduro.net with the support of granoduro.net Implemented in 2018, these initiatives are producers in cultivation activities. 2017 2018 2017 2018 part of a broader programme promoted by the Group to support of Italian agri- For example, for several years now, the Northern 593 1,178 91,675 88,169 culture, mainly by drawing supply chain Group has had a solid collaboration with Italy contracts, up to three years, with various HORTA, a spin-off of the Catholic Univer- Central Italy 768 1,104 104,938 91,390 farmers’ organizations operating in Emilia sity of Piacenza for the development and Southern Romagna, Marche, Puglia and Campania. dissemination of the Barilla Decalogue for 687 678 33,363 47,653 Italy Sustainable Cultivation of Quality Durum Thanks to these contracts, the Group aims Wheat and Granoduro.net®, two innova- Total 2,048 2,959 229,976 227,212 to enable companies in its supply chain tive tools supporting the development to achieve greater profitability and to plan and continuous improvement of sustain- the use of resources more confident- able agronomic practices creation of a completely free service to able Agriculture principles. As a result of ly, with important positive effects on the In particular, the Decalogue is a docu- support farmers in managing fertilisation the numerous initiatives implemented quality of durum wheat produced and the ment shared with farmers and suppliers through precision farming techniques. during the year to support farmers and cost management. Through these annual which contains 10 rules and useful tips to Agrostat is an innovative tool able to in- promote more responsible agricultural and multi-year contracts, Barilla also has promote the spread of more efficient and crease the production and quality of the practices, in 2018 the Barilla Group was the opportunity to involve farmers more sustainable agricultural practices, validat- crop, reducing costs for farmers and the able to purchase approximately 227,000 and accelerate the process of achieving ed over the years thanks to field trials in environmental impact. The first important tonnes of durum wheat grown in a more sustainability promoted by the company different Italian areas. result achieved during the year by the plat- responsible way. by disseminating shared cultivation rules form involved supporting cereal producers and a decision support system to help Granoduro.net® is a digital platform in the Province of Foggia and the whole farmers for a better use of fertilizers and which, by analysing numerous objective of Emilia-Romagna by providing a detailed tonnes of to reduce CO2 emissions and the use of parameters - weather trends, soil fertil- picture of the temporal variability of bio- 227,000 water resources. ity, the phenological state of the plant, mass in the field and the development of Sustainable Durum Wheat In addition to the agreement with Crédit and many others - provides concrete maps fertilisation prescription maps. cultivated in 2018 Agricole and the commercial agreements support to farmers in making technical signed with farmers’ organizations, Baril- decisions regarding such things as field Finally, to develop synergies between dif- fertilisation and crop disease treatments. ferent supply chains, Barilla continued the Alongside the Barilla Decalogue for Sus- pilot project on integrating durum wheat 450,000 tainable Cultivation of Quality Durum with sugar beet crops. During the year, tonnes of durum wheat Wheat and Granoduro.net®, 2018 also thanks to the partnership with Coopera- witnessed the launch of the Agrostat tive Produttori Bieticoli (COPROB) and Ita- purchased under platform. During the year, Barilla worked lia Zuccheri, 31 sugar beet producers in- Cultivation Contracts actively with the CNR Institute of Biome- tegrated their cultures with durum wheat, teorology of Florence and Foggia on the cultivated according to Barilla’s Sustain-
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POSSIBLE ORIGINS FOR IMPORTS OF DURUM WHEAT AND MAIN QUALITATIVE PARAMETERS
ITALY wheat from European or non-Europe- The protein content is the most important mineral salts) that optimises the grinding an countries, depending on quality, each parameter in determining the quality of process. Durum wheat is imported into Italy main- year, than can integrate the national one. the wheat as a high protein level, togeth- ly for quantity reasons as total Italian pro- Wheat with a high protein content is most- er with the quality of the gluten, improves GREECE duction covers just 65-70% of require- ly imported from France, Australia or the resilience in cooking. We try to maximise ments. Often the quality of Italian durum United States, to guarantee the qualitative these characteristics in our purchases. The Over the course of the year, Barilla con- wheat is not sufficient and suitable to performance required by our consumers. level of yellow of the wheat (given by the tinued to forge partnerships with the achieve the qualitative performance re- carotenoids pigments) positively deter- various local players in Greece, aimed quired for high quality Italian pasta. Over the years, depending on the quality mines the colour of the dough. at promoting a more sustainable du- and quantity of the Italian harvest, imports rum wheat supply chain. In this respect, In particular, while it favors Italian durum may also come from other countries such In addition, another important characteris- the Group worked with the University of wheat, Barilla imports around 20-30% of as Greece or Spain. tics is the low ash content (the content of Thessaly to define guidelines to adopt
RUSSIA E KAZAKHISTAN 14.5% PROTEIN USA NPD EASTERN EUROPE 14.0% PROTEIN 14.5% PROTEIN MIN HIGH COLOR INDEX FRANCE 14.5% PROTEIN HIGH COLOR INDEX USA DESERT DURUM 15.0% PROTEIN GREECE LOW ASH CONTENT 12.5% PROTEIN MIN GOOD GLUTEN IMPORTED ONLY IF MEXICO CONTENT HIGH PROTEIN IN ITALY 13.0% PROTEIN HIGH SPECIFIC WEIGHT HIGH VITREOUS IMPORTED ONLY IF HIGH PROTEIN IN ITALY
AUSTRALIA 15.0% PROTEIN HIGH COLOR INDEX GOOD GLUTEN QUALITY
110 111 CHAPTER 8 | GOOD FOR THE PLANET GOOD FOR THE PLANET | CHAPTER 8 agro-technical tools to reduce produc- NORTH AMERICA THE GROUP’S OTHER STRATEGIC SUPPLY CHAINS: tion costs. Starting from 2018 there have COMMON WHEAT, RYE, TOMATOES AND VEGETABLE OILS been the gradual spread, together with cul- In the United States and in Canada, farmers tivation contracts and the Granoduro.net already adopt highly efficient agricultural decision-making system, of the 12 principles cultivation systems, using precision farm- COMMON WHEAT AND aly, this charter is an innovative set of rules of sustainable agriculture. Thanks to these ing tools and in many cases using technical COMMON WHEAT FLOUR for sustainable agriculture. Its 10 rules are initiatives, 218 farmers sowed the first 2,200 support systems similar to those developed intended to guarantee the ever-increasing hectares of land according these guidelines. by Barilla in the European supply chains. Common wheat flour is a key ingredient quality of the products, support the work In the agricultural areas of North America, for Barilla’s bakery products and is pro- of farmers’ communities and protect the the Group continued to collaborate with duced mainly in Italy and France, and in a environmental heritage by safeguarding tonnes of research bodies and local partners in 2018 very limited part in Germany. biodiversity, reducing the use of chemicals 22,879 to improve the agronomic knowledge of To promote sustainable development of and protecting pollinating insects. durum wheat purchased farmers and to develop new sustainable the supply chain, the Group published two under Cultivation agriculture techniques. important documents during the year: La At the same time as the Carta del Mulino Contracts Carta del Mulino and La Carta di Harrys. was issued, the Harrys brand in France drew In collaboration with the University of North La Carta del Mulino (The Mulino Charter) up its Carta di Harrys (The Harrys Charter), Dakota, Barilla has promoted the publication stems from the Mulino Bianco brand’s in- in collaboration with several supply chain of a complete agronomic guide, which con- terest in supporting the spread of sustain- operators, agronomy experts and certifica- TURKEY tains a set of guidelines with practical sug- able agricultural practices along the com- tion bodies, which defines the principles of gestions for the most innovative agricultural mon wheat supply chain in Italy and France. agriculture that the common wheat chain In Turkey, during the year Barilla continued techniques for cultivating durum wheat. This Created in collaboration with the WWF It- is required to respect. the dissemination of the Sustainable Agricul- guide, after two years of field trials, has been ture Manual developed with Bahri Dağdaş made available online on the website of the International Agricultural Research Institute. University and other bodies for the benefit PURCHASES OF COMMON WHEAT FROM GROWERS WHO HAVE SIGNED UP TO THE “CARTA DEL MULINO” The collaboration with the university Namik of all the producers of durum wheat in the Tonnes of wheat Number of growers and Kemal has also been started, for the prepara- state. During 2018, a complete agronomic cultivated with the farm holdings that use tion and then dissemination of a manual of guide was also published to support farmers, support of granoduro.net granoduro.net cultivation of durum wheat in Thrace. developed in collaboration with Agrifood Italy 3,910 45 Canada and SeCan. RUSSIA France 1,497 13 Finally, in Montana, Barilla promoted the Ag- Total 5,407 58 The Barilla supply chain of durum wheat rible digital platform throughout the durum in Russia is still in a study phase. In this wheat supply chain. This provides Canadian context, Barilla has launched a scientific farmers with real-time data on their crops, PURCHASES OF COMMON WHEAT FROM GROWERS WHO HAVE SIGNED UP TO THE “CARTA DI HARRYS” project to identify varieties and cultivation supporting them in the use of more efficient Tonnes of wheat grown Number of growers and techniques for durum wheat, together and sustainable agricultural practices. with the support of farm holdings that use with the Faculty of Agriculture of Moscow granoduro.net granoduro.net (Tymiriazev Academy). France 26,717 183
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In particular, this charter contains 40 RYE AND RYE FLOUR chased and processed for Barilla by LiDestri the emission of greenhouse gases, in line agro-ecological rules based on the NF30- come from Californian producers, who ap- with the criteria of the Barilla Sustainable Ag- 001 public standard, outlining good prac- Rye is the basis of the crunchy bread rec- ply mechanical harvesting practices. riculture Code. tices for the responsible cultivation of ipes produced by the Group mainly in In collaboration with these producers, in wheat in all its phases, taking into consid- Sweden and Germany. Barilla’s rye supply 2018 Barilla concluded an LCA study on the eration the positive and negative effects chain has an excellent environmental profile last decade’s crops in collaboration with the deriving from soil cultivation. based on two main factors: first of all, rye University of California UC Davis. The study cultivation does not require a high use of in- has highlighted a continuous reduction over Furthermore, the Carta di Harrys is the puts, such as water and fertilisers; secondly, the years in the use of water resources and foundation for the sustainable agriculture sustainable agronomic practices, in environ- programme Moelleux & Responsable (Soft mental and agricultural terms, have existed and Responsible), with which the French in Germany and Sweden for some time. As RYE AND RYE FLOUR brand sets out to achieve the dual objec- regards supplies of rye, Barilla undertakes to Total tonnes Tonnes purchased from the local market tive of providing concrete support to lo- buy 100% of the raw material locally, unless purchased cal farmers, through the use of multi-year adverse weather conditions make a partial t. t. % cultivation contracts, and promoting the supply from other countries necessary. spread of more environmentally-friendly 2017 2018 2017 2018 2017 2018 agricultural practices. TOMATOES Sweden 35,238 34,800 34,780 31,668 99% 91%
In addition to the commitments made In Italy and the United States, the main Germany 21,813 21,315 21,813 21,315 100% 100% through the Harrys brand sustainable ag- countries in which Barilla uses tomatoes Italy 276 324 - - - 0% riculture project, in France, Barilla buys to produce ready-made sauces, the Group common wheat flour only from mills that is committed to buying 100% of the raw France 394 343 - - - 0% fully manage their supply chain and are materials locally and promoting initiatives Russia 285 343 285 343 100% 100% able, for each crop, to provide a detailed for the sustainable development of supply analysis of the product life cycle. chains, as defined in the Barilla Sustainable Total 58,006 57,125 56,593 53,326 98% 93% Agriculture Code. In Italy, the Group carried out an LCA anal- In Italy, Barilla buys tomatoes only from pro- ysis involving all the mills in Barilla’s na- ducers operating in the Po Valley who ap- TOMATOES tional wheat flour supply chain to identify ply mechanical harvesting techniques. Since Total tonnes Tonnes purchased from the local market the main areas for improvement for sus- 2015, the Group has committed itself to purchased tainable development in this sector. Fur- buying tomatoes from Global G.A.P certified t. t. % thermore, working with HORTA, Barilla has producers who guarantee the application drawn up and made available to farmers in of sustainable and responsible agricultural 2017 2018 2017 2018 2017 2018 the supply chain, a set of guidelines for the practices. Constant commitment in this re- Italy 52,998 57,402 52,998 57,402 100% 100% sustainable cultivation of soft wheat. spect led Barilla in 2017 to purchase 84% of the tomatoes used in Italy from Global G.A.P North America 9,900 10,710 9,900 10,710 100% 100% certified producers. Total 58,006 68,112 56,593 68,112 100% 100% In the United States, the tomatoes pur-
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VEGETABLE OILS sunflower seed oil purchased from Barilla SUPPLY CHAINS WITH POTENTIAL tification and sugar cane producers the comes from producers that meet these SOCIAL ISSUES SMETA or Bonsucro certification. Vegetable oils are used by Barilla to produce criteria, more than double the amount re- numerous recipes. In particular, the Group corded in 2017. The Group’s procurement system also Furthermore, the Group requires its sup- uses sunflower oil, extra vergin olive oil, includes supply chains that present po- pliers to register with the international rapeseed oil and soybean oil. In Italy, Barilla also uses soybean oil in its tential social issues. Sedex platform, verified quarterly, in order As regards sunflower oil, mainly used in It- recipes, purchased entirely from producers to ensure full compliance with the ethical aly, the Group promotes its production in who meet the requirements of the CSQA Barilla has identified potential issues in and social standards that the Group is in- rotation with durum wheat. In this respect, DTP 112 standard. the cocoa, cane sugar and promotional spired by. Finally, a binding requirement Barilla has undertaken numerous projects With regard to rapeseed oil, which is par- gadget supply chains related to the use for all supply contracts is the supplier’s with farmers to determine the best agricul- ticularly widespread in France, Barilla has of child labour and the failure to respect acceptance of the Barilla Code of Ethics. tural practices for sunflower cultivation, in launched several projects in collaboration human rights. accordance with the principles of the Barilla with suppliers to define how to apply the Sustainable Agriculture Code. principles of sustainable agriculture defined Therefore, when making purchases from In particular, Barilla is committed to buying at Group level. these supply chains, the company only sunflower seed oil from producers who deals with suppliers who hold certifica- are certified to the CSQA or ISCC+ DTP tions issued by independent organisa- 112 standard, which guarantee sustainable tions that verify compliance with inter- production in environmental, economic national ethical and social standards. For and social terms, or which adopt the HOR- example, Barilla requires all promotional TA Girasole.net® platform. To date, 86% of gadget suppliers to have the SA 8000 cer-
VEGETABLE OILS 2017 2018 Total tonnes Tonnes purchased from the local market Suppliers deemed to be at potential purchased 97 83 risk of violating human rights t. t. %
2017 2018 2017 2018 2017 2018 Suppliers exposed to the risk of violating human rights who hold independent third 84 71 Sunflower party certifications or audit reports verifying 35,606 39,257 5,388 8,380 15% 21% seed oil compliance with ethical and social standards
Rapeseed oil 8,030 8,950 3,594 4,308 45% 48% Percentage of suppliers who hold independent third party certifications or audit reports verifying 85% 86% Total 43,636 48,207 8,982 12,688 21% 26% compliance with ethical and social standards
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COCOA ATTENTION TO DIVERSITY AND INCLUSION ALONG THE SUPPLY CHAIN Cocoa is one of the Group’s raw materi- als that presents the greatest social and human rights concerns. 27% of cocoa is bought Over the last few years, Barilla has made important progress in promoting diversity Through the Pan di Stelle brand, the Baril- by Barilla in collaboration and inclusion in the company. As a next step, during the year, the Group decided to la Group has therefore launched a collab- with the Cocoa Horizons extend its commitment in this area to its relationships with suppliers. oration programme with the supplier Barry Callebaut and his Cocoa Horizons Founda- Foundation Barilla therefore launched the Supplier Diversity & Inclusion project to ensure that its tion, with the aim of supporting the cocoa procurement processes involve female-run companies, companies managed by LG- supply chain in Africa. During the year, this development of the sector. BTI people, as well as an increasing number of small and medium-sized companies. collaboration led to the launch of a pro- In 2019 all the cocoa purchased from Barry ject called Un Sogno Chiamato Cacao (A Callebaut will be part of the Cocoa Horizons As a first step, Barilla submitted a questionnaire on diversity and inclusion issues to Dream Called Cocoa), through which the project and by 2020 the same approach will around 1,900 suppliers in six different regions (USA, Italy, France, Germany, Sweden Group is actively committed to supporting be launched to other Group suppliers. and Greece). The questionnaires gathered relevant information for the Group regard- the foundation’s projects in Ivory Coast. ing the different perception of diversity and inclusion in the various regions of the The Foundation’s projects aim to improve CANE SUGAR world in which it operates. For example Supplier Diversity is very well-known in North the living conditions of cocoa farmers’ com- America, where a specific certification is required for suppliers to be considered as “Di- munities through numerous training cours- With regard to cane sugar, Barilla has iden- verse” and where many companies have developed ad hoc D&I support programmes. es, support programs for school education, tified potential critical social issues, consid- In Europe, however, Supplier Diversity is little known and there are few organisations initiatives to strengthen the role of women ering the geographical areas in which this able to certify a company as “Diverse”. Furthermore, only a small number of compa- and activities to protect children and health. raw material is produced. Barilla undertakes nies have defined so far developed their own D&I strategy. To further safeguard the sustainability of the to support the development of sustainable In particular, the questionnaire revealed that several Barilla suppliers are considered supply chain, the Barilla Group buys cocoa purchasing projects in collaboration with the “Diverse” and some of them have developed their own D&I programs. only from suppliers who have signed up to main suppliers and to define specific ethical the World Cocoa Foundation, a non-prof- and environmental standards. In the coming years, the Group will be it organisation engaged in the responsible Today Barilla purchases cane sugar only developing the Supplier Diversity & In- from SMETA (Sedex Members Ethical Trade clusion project, extending it to new Audit) or Bonsucro certified suppliers. suppliers and new geographical areas, while promoting the dissemination of a culture of respect for Supplier Diversi- of Barilla’s ty along its supply chain by organising 100% workshops with suppliers, customers cane sugar suppliers and interested companies. are certified according to the SMETA standard
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8.2 PROTECTION • the use of growth hormones is not a plan to restore compliance based on the allowed; severity of the case. OF ANIMAL WELFARE • genetic engineering or cloning of farm Furthermore, in order to train people in an- animals and/or their offspring are not imal welfare, Barilla carried out a training allowed; course internally, run by Compassion in • breeds must be selected based on traits World Farming (CIWF), for all the employ- that improve wellbeing, rather than only ees involved in managing the supply chain, ANIMAL WELFARE GUIDELINES to increase productivity. particularly the Global Supplier Quality Management and Global Purchasing Unit. Compliance with these standards, period- Barilla is committed to ensuring that all • freedom to express their species-spe- ically verified through specific audits, is an suppliers of raw materials of animal or- cific behavioural characteristics; integral part of contracts with suppliers of igin respect not only the legal require- • freedom from fear and discomfort. eggs and meat. If the supplier does not ments but also the highest animal wel- comply with the standards, Barilla draws up fare standards and criteria. Furthermore, the guidelines establish spe- cific standards with which Barilla supply In support of this commitment, working chains must comply. In particular: PROCUREMENT OF FREE-RANGE EGGS with Compassion In World Farming (CIWF), the Group has drawn up the Barilla Animal • all animals raised in the supply chains Welfare Guidelines. must have appropriate access to feed Barilla believes that the confinement of Since 2012, all the eggs used in “Le Emili- and water, thus satisfying their needs hens is a harmful practice for the wellbe- ane” and “La Collezione” pasta, as well as Barilla pays particular attention to estab- and reducing aggression; ing of animals and has therefore decided to Mulino Bianco, Pan Di Stelle and Pavesi lishing precise purchasing criteria for eggs, • densities must guarantee the wellbe- abandon this farming method throughout baked products, are entirely free-range. meat, fish and dairy products, coming from ing and comfort of the animals, allow- the supply chain and to use free-range Since 2017, the eggs used in Harrys brand Europe, North and South America, Russia ing the expression of species-specific eggs exclusively from 2019, anticipating a products have also all been free-range. and Turkey. behaviours; commitment initially set for 2020. • routine mutilations must be avoided, In particular, the Group recognises in its unless strictly necessary to preserve the guidelines that it is fundamental to respect welfare of the animals; PROCUREMENT OF MEAT-BASED PRODUCTS both the physical and mental wellbeing • transport must always be carried out in of the animals, and their ability to express a way that minimises potential causes species-specific behaviour. For this reason, of stress and shortens the length of Since 2014, Barilla has been running an The suppliers signed the joint document it promotes respect for the Five Animal travel as much as possible. Transport for important project with the suppliers of in 2015 and the practices are already be- Freedoms: over 8 hours must always be avoided; meat used in sauces and filled pasta to ing implemented. Furthermore, during • animals must always be stunned before develop new animal welfare guidelines 2018, Barilla planned to complete the • freedom from hunger and thirst; slaughter; that cover all supplies of pork and beef. full implementation of all the practices • freedom to have an adequate physical • antibiotics must always be used respon- These guidelines respect all the practices for both supply chains. environment; sibly, reducing their use where possible mentioned above. • freedom from pain, injury and disease; and avoiding prophylactic use;
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To date, the guidelines cover 100% of the filled pasta produced in Italy (99% of the EXTERNAL ACKNOWLEDGEMENTS supplies of pork and beef for sauces and total meat used by Barilla).
In February 2019, the seventh Business companies in the industry worldwide, as- PROCUREMENT OF CHICKEN MEAT Benchmark on Farm Animal Welfare re- sessing how they manage and communi- port was presented in London. An initia- cate their policies and practices regarding tive that grows year by year, with the total the welfare of livestock. Barilla does not purchase chicken meat for • breeding in enriched environments that number of companies analysed increasing the production of its products. However, it meet the new GAP standards, including from 110 in 2017 to 150 in 2018, coming In the 2018 edition of the Benchmark, committs to ensure that any future purchas- bedding and light management; from 23 different countries. Barilla confirmed its leadership in the es come from suppliers who undertake to • elimination of pre-stunning manipula- field of animal welfare, the only Italian implement specific animal welfare protec- tion, using irreversible stunning systems The BBFAW benchmark is therefore be- company to achieve the third level of the tion practices.In particular: instead; coming an increasingly popular tool used pyramid defined by the BBFAW. • transition to breeds approved by the • guaranteeing compliance with the by investors and industry stakeholders world-wide organization RSPCA or by standards defined by Barilla for the pro- to assess the policies, performance and An important result achieved thanks to de- the Global Animal Partnership (GAP) tection of animal welfare, undergoing transparency of food companies in terms tailed and transparent communication on based on measurable results of welfare external verification activities. of animal welfare. In particular, in order to the subject of animal welfare, which includes improvement; ensure clear and transparent communi- not only defining more concrete objectives, • density reduction to a maximum of 1.2 cation, the BBFAW analyses and evaluates but also communicating the progress made Kg / m2, prohibiting the use of cages; public communications by leading food from year to year to achieve them.
PROCUREMENT OF FRESH MILK ANIMAL ORIGIN SUPPLY CHAINS: EGGS, PORK AND BEEF
Fresh milk is a key ingredient for many curity and large-scale risk assessment. EGGS The results obtained during the year for Barilla products, purchased by the Group At the end of 2018 over 80% of the milk the responsible purchase of the eggs are from local, traceable and controlled sup- volumes purchased by the group came Barilla uses eggs for its own bakery the following: ply chains. During 2018 Barilla, in partner- from farms certified according to the products and fresh pasta, mainly in Italy ship with its main supplier, started a certifi- CReNBA Standard for Animal Welfare (this and France. • Italy (from which 77% of the eggs pur- cation process according to the animal percentage represents 20% of the pur- chased comes from) 100% of the eggs welfare and biosecurity assessment sys- chases of dairy products by the Group). In Since 2012, the Group has started a pro- are purchased from free-range hens, tem for cattle breeding (beef and dairy cat- addition, all the dairy cows of the Italian cess of conversion of the supply chain, traced and verified supply chains; tle) developed by the CReNBA (National supply chain, which represent 20% of the through the gradual abandonment of • France (from which 17% of the eggs Reference Center for Animal Welfare). The supply of dairy products, are raised in free caged breeding and favoring the pur- purchased comes from) 100% of the certification process required the analysis stables without constraint systems. chase from producers who raise hens on eggs are purchased from free-range of various parameters such as stall man- the ground. Barilla undertakes to com- hens, traced and verified supply chains; agement, structure assessment, measure- plete this transition by 2020. • Brazil (from which 5% of the eggs pur- ment of specific animal parameters, biose- chased comes from) the conversion
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to land farms was completed in March the adoption of new types of sustainable entirely from producers with free-range implemented in collaboration with farm- 2019; farming will be completed during 2019. farms during 2019. ers in the coming years. • Turkey (from which less than 1% of pur- Furthermore, Finally, Barilla carries out periodic audits on chased eggs comes from) the conver- Barilla carries out periodic audits at all its all free-range egg producers to verify ef- As regards the supply of pork, the Group sion to land farms was completed in egg suppliers, in order to ensure the ef- fective compliance with alternative farm- is working with Compassion in World March 2019; fective adoption of practices sustainable ing systems. To date, these checks have Farming and its Italian suppliers to abolish • USA (from which less than 1% of pur- breeding in line with the Group’s animal been carried out on European suppliers, tail-docking throughout the supply chain. chased eggs comes from) a profound welfare policy. In particular in Brazil, Baril- as they are the only ones to have complet- This process is aimed at improving wel- reformulation of the products has been la has started a process of conversion of ed the conversion process to cage-free fare conditions for the animals, increasing completed with the aim of eliminating the supply chain, favoring the purchase of farms. In other non-European countries, awareness among breeders on this subject the eggs as an ingredient. The conver- eggs from producers who raise hens on the Group relies on suppliers who comply and promoting the development of alter- sion will be completed during 2019. the ground. The Group expects to com- with national breeding schemes. native breeding practices that can reduce plete this process by 2019. In the absence of national schemes, an the risk of accidents linked to cannibalism During 2018, Barilla introduced a digital Animal Welfare Officer is in charge of car- and aggression among the animals. system, called eggs.barilla.com, to track In the United States, a project has been rying out an audit on a sample of breeders, the origin of eggs in their supply chains launched to reformulate products con- in order to verify their compliance with a Following an initial stage of checking and in France and Italy, which represent 94% taining eggs, which will lead to a gradu- recognised guarantee scheme. improving environmental standards in all of global supplies. Important progress has al decrease in the use of this ingredient. pigsties, Barilla involved the farmers in spe- been achieved by Barilla in Brazil, where The remaining volumes will be purchased cific training sessions on correct breeding PORK AND BEEF practices for long-tailed pigs. EGGS Pork and beef are ingredients used in Ba- In parallel, between the end of 2016 and Percentage of Total tonnes Tonnes purchased from the local rilla’s ready-made meat sauces and filled the beginning of 2017, the Group carried free-range eggs purchased market pasta produced in Italy. In accordance with out tests and evaluations on the best ma- purchased its animal welfare policy, the group buys terials for the environmental enrichment of t. t. % % meat from producers who respect the five livestock farms, in order to better meet the freedoms of animal welfare. behavioural needs of the animals and pre- 2017 2018 2017 2018 2017 2018 2017 2018 vent aggressiveness. In the coming years, Italy 18,833 18,918 8,833 18,918 100% 100% 100% 100% During the year, Barilla completed its analy- Barilla will work actively with its suppliers sis of the meat supply chain to identify pos- to implement these breeding standards France 4,307 4,181 3,350 2,207 78% 53% 100% 100% sible areas for improvement in line with the throughout the supply chain by 2019. United parameters included in the Business Bench- 181 204 181 204 100% 100% 0% States mark on Farm Animal Welfare (BBFAW).
Brazil 1,334 1,334 1,334 1,334 100% 100% 0% This analysis showed an improvement in Russia 9 14 9 14 100% 100% 0% the alignment with the BBFAW and, as a result of the main deviations observed, Turkey 18,833 30 18,833 - 100% 0 0% Barilla committed itself during 2018 to Total 24,664 24,680 23,698 22,676 96% 92% 94% 94% drawing up an improvement plan to be
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BEEF BUSINESS BENCHMARK ON FARMED ANIMAL WELFARE SURVEY Total tonnes purchased Tonnes purchased from the local market
t. t. % During 2017, Barilla conducted a survey animals that are effectively stunned be- 2017 2018 2017 2018 2017 2018 involving Italian meat suppliers to verify fore being slaughtered. Italy 714 750 714 750 100% 100% the level of compliance with the param- United eters stated in the Business Benchmark BEEF 9 4 9 4 100% 100% States on Farmed Animal Welfare (BBFAW). This analysis produced the following results: • all the cattle are transported from the Total 723 754 723 754 100% 100% breeding to the slaughter in less than PORK PORK 8 hours, including the loading and un- Total tonnes Tonnes purchased loading activities from the means of purchased from the local market • the gestation cages for the sows are transport; used for the first four weeks of gesta- • all products containing beef come from t. t. % tion, subsequently all the animals are animals that are effectively stunned be- 2017 2018 2017 2018 2017 2018 transferred in collective boxes for the fore slaughter; remaining period; • all calves reared at Barilla supply chains Italy 2,003 2,096 2,003 2,096 100% 100% • 50% of the animals bred are not subject are not subject to routine mutilation United to cutting the tail while for the remain- and are not injured; 21 12 21 12 100% 100% States ing part tests are underway to eliminate • 33% calves are bred using straw bed- this practice; ding in the stalls. Total 2,024 2,108 2,024 2,108 100% 100% • all pigs are transported from breeding to In the course of 2019 the results of the slaughter in less than 8 hours, including analysis conducted will also be verified loading and unloading from transport with the support of an independent third OTHER PRODUCTS OF from local, tracked and certified supply vehicles; party and an improvement path will be de- ANIMAL ORIGIN chains in its production processes. Fresh • all products containing pork come from fined for 2020. milk is mainly used in Italy, where about Also other animal products such as fish, 83% of global milk volumes and 25% of milk and dairy products are used in Barilla dairy products are consumed. The Group OTHER PRODUCTS OF ANIMAL ORIGIN recipes. With reference to these ingredi- purchases this ingredient mainly in North- Total tonnes Tonnes purchased fromthe local market ents, the Group is committed to promot- ern Italy from a single supplier from which purchased ing purchases in line with what is defined over 90% of the milk consumed globally t. t. % within the animal welfare policy and pre- and 25% of dairy products comes from. 2017 2018 2017 2018 2017 2018 ferring supplies from breeders operat- The latter is actively engaged in the appli- Fished fish 73 68 - - 0% 0% ing in the same countries where Barilla is cation of the Barilla Guidelines on Animal present. Welfare and has obtained the certification Butter 7,208 7,592 - - 0% 0% As regards milk, Barilla is committed to for the Animal Wellfare according to the Milk 2,951 3,161 2,951 3,161 100% 100% replacing milk powder with fresh milk standard defined by the CReNBA. Dairy products 6,994 7,303 3,719 3,945 53% 54%
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8.3 SUSTAINABLE MANAGEMENT RAW MATERIALS USED FOR PACKAGING Purchased in OF PACKAGING MATERIALS accordance 2017 2018 with sustainable packaging principles Flexible film 23,695 t. 23,937 95% Barilla has issued the Barilla Sustainable Building on the excellent results achieved Glass 58,046 t. 141,497 100% Packaging Principles, published on the over the years by applying the Sustaina- Paper and cardboard for www.barillagroup.com website, to pro- ble Packaging Principles, in 2017 Barilla 137,027 t. 63,349 100% packaging mote the environmental sustainability of decided to update this document, intro- its product packaging. In particular, these ducing a further concept of sustainability FS FSC, PEFC and SFI certified principles require: and pushing the bar even higher. paper and cardboard for packaging C, PEFC and SFI 98.8% 100% 100% • the quantity of packaging materials to The zero waste packaging objective, certified paper and cardboard be reduced; achievable by reducing packaging at for packaging • the use of recyclable packaging; source and ensuring the recyclability • the use of materials sourced from re- of materials, was supplemented by the sponsibly managed forests; longer term zero impact packaging ob- PACKAGING RECOVERY AFTER CONSUMPTION • validation of the choice of technical jective, which requires the use of renew- 2017 2018 packaging solutions by means of im- able or recycled resources to product pact analyses (LCAs); packaging materials. Recyclable packaging put on the market 99% 99.4% • the use of materials not coming from Packaging showing information on how to 99% 99% the food chain. recycle
Packaging made of recycled material 37% 35% PRODUCT PACKAGING
• Barilla has become a member of the Barilla has declared its commitments for Barilla has established responsible pur- ing the recyclability of packaging, prefer- Sustainable Packaging Coalition, a the sustainability of plastic packaging, sign- chasing criteria for the paper and cardboard ably using recyclable materials, where the working group that involves produc- ing the pledge and adhering to the com- used in its product packaging, making use organoleptic characteristics of the product ers, distributors, public bodies and ac- mitment of the Ellen MacArthur Founda- of supply chains managed according to the allow it. In order to help consumers sort ademics in promoting the wider use of tion for a more conscious use of plastic FSC or PEFC standards, which guarantee packaging and dispose of it correctly, Ba- more sustainable packaging materials. materials. sustainable forest management, based on rilla has also designed and applied specific • The Group has signed up to the US In particular, by 2020 all packaging materi- environmental protection, respect for rights recycling icons on its product packaging. How2Recylce labelling system, which als placed on the market will be monoma- and cultural traditions and promoting the Barilla Group takes part in two important ini- promotes the spread of clear and sim- terial or recyclable with paper according to economic sustainability of forestry activities. tiatives to promote product packaging recy- ple communication with consumers on the reference standards. The Group is also committed to guarantee- cling: recycling product packaging.
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THE BARILLA READY PASTA 8.4 PRODUCTION RECYCLING PROGRAMME
During the year, Barilla entered into an important partnership with TerraCycle, an in- novative company involved in the recycling of plastic materials, to provide its consum- ers with a simple and free service for recycling Barilla ready-made meal packaging. Through this initiative, called Ready Pasta Recycling Program, the Group is therefore SUSTAINABLE MANAGEMENT committed to providing people who choose Barilla products with innovative tools to OF THE BARILLA’S PRODUCTION ACTIVITIES reduce their environmental impact.
In particular, the partnership ensures that, once collected, the pasta packaging is Barilla’s focus on the environment is also organisation committed to promoting an cleaned and melted into plastic which can then be reused to make new sustainable reflected in its constant promotion of ef- ever greater synergy between the finan- products. Furthermore, for every kilo of waste sent to TerraCycle, consumers have the ficiency and sustainability in its produc- cial community and the business world to opportunity to contribute 1 dollar to supporting a non-profit organisation, school or tion processes, the accurate monitoring enhance and monitor the commitment to charity of their choice. of energy resources used in the plants, contain climate change and the responsi- greenhouse gas emissions, water con- ble and sustainable use of water resources Thanks to this initiative, Barilla’s Pasta Pronta packaging is now 100% recyclable and sumption and production waste. over time. makes a concrete contribution to reducing the quantities of potentially recyclable ma- In order to manage its environmental foot- terials disposed of in landfills rather than being reused. print more effectively and guarantee the In particular, the Group responds to the sustainability of its production processes, CDP Climate Change, CDP Forest and the Group has implemented a solid envi- CDP Water questionnaires. During 2018 in ronmental management system for sever- particular, the Group obtained a “B” rating al years. This system, which exists in 90% (on a scale ranging from a minimum of of the Group’s plants, was certified by an D- to a of A) in the Climate Change ques- independent third party as compliant with tionnaire, while it received an “A-” rating in the international ISO 14001 standard. Fur- the Forest questionnaire, an improvement thermore, with particular reference to en- compared to the results achieved in 2017. ergy resources, Barilla has implemented a system for the ongoing improvement of energy performances, certified according to the ISO 50001 standard, for 70% of pro- duction plants. 93% of production volumes In order to ensure transparent communi- manufactured in cation of its environmental performance, the Barilla Group voluntarily adheres to the ISO:14001-certified initiatives promoted by the Carbon Disclo- production plants sure Project, an independent international
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ing high-energy efficiency refrigeration the atmosphere, in 2018 they fell by 2% units, compressors and air conditioning compared to 2017. systems. This reduction is attributable to the ener- Finally, further energy efficiency meas- gy efficiency measures taken at the pro- ures were taken regarding lighting sys- duction plants, the installation of new re- tems, involving the installation of new newable energy production systems and solutions based on LED technologies. the purchase of a considerable amount of electricity, around 68% of the total, from 3 total plants As regards energy generation from re- renewable sources with Guarantee of Or-
67% plants certified ISO 14001 newable sources, during the year Barilla igin certificates (GO). completed the installation of a new co- 1 total plants 100% plants certified ISO 14001 generation plant at the Saint Luis (Mex- 100% plants certified ISO 14001 90% plants certified ISO 14001 14 total plants 14 10 total plants ico) production site and a photovoltaic ITALY REST OF EUROPE AMERICA AAA plant in Melfi (Italy). 68% of electricity used Thanks to these initiatives, the Group re- comes from renewable corded a decrease in energy consump- sources with GO tion on the previous year. In particular, in FOCUS ON REDUCING ENERGY CONSUMPTION 2018, Barilla used 5,398,672 GJ of energy, certificates. AND EMISSIONS 23% of it from renewable sources. As regards greenhouse gas emissions into
In order to improve its environmental profile, Barilla makes significant invest- ments every year in modernising its 6.8 million production facilities and implementing euros new technologies to guarantee ever INVESTMENTS IN THE RUBBIANO SAUCE PLANT better performance in terms of energy invested efficiency. During 2018 in particular, the in environmental Group invested over € 6.8 million in pro- protection During the year, Barilla continued with of this investment went towards imple- tecting the environment. the activities undertaken in 2017 to menting the Industry 4.0 mechanical double the production capacity of the technologies and computer communi- Thanks to these investments, the Group ed work on the production lines to re- Rubbiano sauce production plant and cation infrastructure. These innovations continued to implement the Energy Sav- place burners, improve the thermal in- introduce new technologies to improve will allow Barilla to reduce the plant’s ing Project (ESP) during the year, aimed sulation of machinery and install heat the efficiency of production process- environmental impact, with an estimated at improving the energy efficiency of recovery systems. Barilla has also made es and reduce energy consumption as 7% decrease in CO2 and 9% decrease in the plants and production processes. improvements to the general production well as greenhouse gas emissions. Most water use. In particular, Barilla carried out target- plants systems by installing and automat-
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ANNUAL ENERGY USE BY SOURCE (GJ) WASA: A 100% CO2 COMPENSATED BRAND 2017 2018 DIRECT USE 2,595,331 2,461,488 In 2018, Wasa became Barilla’s first 100% thermore, Wasa is committed to buying ENERGY FROM RENEWABLE SOURCES CO2 compensated brand, setting a new electricity exclusively from renewable Natural Gas 2,210,737 2,114,897 standard for the whole Group in terms of sources with a Guarantee of Origin cer- environmental sustainability. tificate. After the reduction plans were Fuel oil 5,124 6,328 implemented, Wasa decided to offset Diesel 459 1,040 This is the result of a structured process the remaining emissions amounting to Petrol 5 - that required the accurate monitoring and around 94,000 tonnes of CO2. management of CO2 emissions through- SELF-PRODUCED ENERGY THROUGH COGENERATION out the product life cycle, from cultiva- To offset these emissions, the brand has Thermal Energy 227,052 197,271 tion of the raw materials to the shelf.This chosen to contribute to the promotion result was possible thanks to a commit- of rainforest conservation and renewa- Electricity 151,954 141,634 ment on two fronts: first of all, over the ble energy projects. ENERGY FROM RENEWABLE SOURCES years, Wasa has implemented energy Photovoltaic electricity - 319 efficiency projects aimed at promoting more sustainable logistics practices. Fur-
INDIRECT USE 2,853,325 2,937,184 Electricity 2,251,749 2,272,893 from non-renewables 1,036,988 1,038,781 from renewable sources 1,214,761 1,234,112 Thermal Energy 590,016 651,657 from non-renewables 590,016 651,657 from renewable sources - - Energy for cooling 11,561 12,633 from non-renewables 11,561 12,633 from renewable sources - -
ENERGY USED PER TONNE OF FINISHED PRODUCT (GJ/T) 2017 2018 3.13 3.10
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For several years, Barilla has been com- carbon dioxide emissions by 15% and al- production plants. In particular, during 3 mitted to reducing the amount of wheat most all particulate emissions, compared 2018 around 90,000 m of water were -21% reduction in and products transported by road and to an equivalent diesel-powered vehicle. reused by the Group after entering the switching to means of transport which production process. water used per tonne of have less environmental impact. As part of the vehicle fleet renewal pro- finished product since 2010 cess, the Group has also purchased 83 In Sweden and Germany, the Group in- hybrid-powered vehicles with an inte- creased the share of products transported grated thermal and electric engine, which GREENHOUSE GAS EMISSIONS PER SCOPE (T CO2 EQ) by train, reducing greenhouse gas emis- will allow Barilla to reduce carbon diox- sions by an estimated 1,600 tonnes over ide emissions by almost 40% compared 2017 2018 the year. As far as Italy is concerned, Ba- to the use of conventional vehicles. SCOPE 1 185,492 175,761 rilla uses rail transport to move durum wheat from collection points at the port Alongside the purchase of hybrid vehi- Emissions from use of fossil fuels 150,816 144,454 of Ravenna and Polesella station (Rovigo) cles, Barilla has also completed the in- to the Parma production plant. Thanks to stallation of 31 charging stations within Emissions from owned 34,676 31,300 these journeys, the Group was able to save the parking area at the Pedrignano plant. co-generation plants around 800 tonnes of CO2 over the year. ATTENTION TO WATER USE Emissions from photovoltaic plants - 7 The modernisation of the company’s SCOPE 2 193,687 197,094 fleet also plays a part in Barilla’s strategy Barilla is pursuing the rational use of wa- to reduce air pollutant emissions. In par- ter resources in its production processes. Indirect emissions due to electricity used 98,659 148,763 ticular, the Group has reached an impor- The Group has therefore carried out sev- Indirect emissions due to thermal energy 94,903 48,194 tant goal in the logistics sector, supple- eral specific projects to reduce water con- produced by external co-generators menting its fleet with 3 new tractor units sumption in its production facilities. These Indirect emissions due to cooling energy powered by liquid natural gas during the have allowed the Company to reduce its 125 137 produced by external co-generators European Week of Sustainable Mobility. water requirement per tonne of finished product by 21% compared to 2010. Total 379,179 372,855 The new vehicles allow the Group to re- duce nitrogen oxide emissions by 70%, These actions also allowed the company to limit the increase in water consump- tion in 2018 following the implementa- GREENHOUSE GAS EMISSIONS PER TONNE OF FINISHED PRODUCT (T CO2 EQ) tion of new production lines which led 2017 2018 -30% reduction to an increase in the Group’s water re- 0.22 0.21 in greenhouse gas quirements. emissions per tonne In order to ensure a more responsible use of water resources, the Group pro- of finished product motes water recycling and reuse in pro- since 2010 duction processes and in the general services associated with its offices and
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WATER USAGE BY SOURCE OF SUPPLY (M3) ATTENTION TO WASTE PRODUCTION tion in the tonnes of hazardous waste 2017 2018 produced. However, the start of several Barilla implements projects to incen- construction projects to build new pro- From well 1,375,655 1,480,996 tivise the reduction of waste produced duction sites and offices led to a great- and adopt recovery methods to replace er production of non-hazardous waste, From public water supply disposal. In particular, during 2018, the which led to an increase in total waste 985,641 968,476 system Group recorded a substantial reduc- generated during the year.
From other sources - 47,758
Total 2,361,296 2,497,230 WASTE PRODUCED PER TYPE (T.) 2017 2018
3 WATER USED PER TONNE OF FINISHED PRODUCT (M ) Non-hazardous waste 28,214 29,700 2017 2018 1.36 m3 1.40 m3 Hazardous waste 416 526
Total 28,630 30,225 WATER DISCHARGED BY DESTINATION (M3) 2017 2018 WASTE PRODUCED PER TONNE OF FINISHED PRODUCT (T.) Into surface water 211,637 307,807 2017 2018 0.0164 0.0173 Into sewerage system 674,802 689,023
Total 886,439 996,831 WASTE PRODUCED PER DESTINATION (T.) 2017 2018
Non-hazardous 28,214 29,700 waste
Recycling 26,576 28,081 Disposal 1,638 1,619 Hazardous waste 416 526 Recycling 351 432 Disposal 65 93
138 139 DIVERSITYCHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9 AND INCLUSION
9.1 Barilla People 9.2 Wellbeing of employees 9.3 Attracting and developing talents 9.4 Training and communication 9.5 People’s health and safety 9.6 Trade Union Relations 9.7 Community inclusion
140 141 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9 9.1 BARILLA PEOPLE
Diversity, equality and Inclusion are an Lisa Kepinski, founder and director of the BARILLA PEOPLE ON PERMANENT CONTRACTS integral part of the Group’s culture, val- Inclusion Institute, who has specific skills BY REGION AND GENDER ues and Code of Ethics. in behavioural sciences and in integrated 2017 2018 and inclusive organisational development, The Group is engaged in a process aimed has joined the Board, replacing the con- Men Women Total Men Women Total at promoting the development of each sultant Patricia Bellinger. Finally, alongside person’s value, respecting physical, cultur- the establishment of the Global Diversity & Italy 2,903 973 3,876 2,942 1,001 3,943 Rest of Europe 1,790 968 2,758 1,838 954 2,792 al and moral integrity, and the right to as- Inclusion Board, the Group has appointed America 362 169 531 379 172 551 sociate with others, and paying attention a Chief Diversity Officer, who reports di- AAA 202 79 281 198 82 280 to every aspect of people’s lives, because rectly to the Chief Executive Officer. Rest of World 67 53 120 65 52 117 it is human life that inspires all the compa- Total 5,324 2,242 7,566 5,422 2,261 7,683 ny’s activities. Barilla supports and respects A management system that respects diver- human rights in all its activities and in its sity and promotes inclusion is fundamen- Note: The personnel data shown in the following chapter relate to Barilla G. and R. Fratelli with the exception of Mexico, where 182 people were employed on permanent contracts in 2018 and 215 people in 2017. sphere of influence, offering equal oppor- tal for a company that operates all over tunities for the development of people and the world with more than 8,000 people, guaranteeing the protection of their privacy. almost all of whom are hired under per- BARILLA PEOPLE ON FIXED-TERM CONTRACTS manent contracts, a sign of Barilla’s con- BY REGION AND GENDER This process has led to collaborations with stant attention to guaranteeing stability of 2017 2018 external organisations aimed at achieving employment for its workers. specific results, and to company policies Men Women Total Men Women Total and procedures being adopted to highlight 107 78 185 99 92 191 the central role played by the inclusion of Italy 108 54 162 123 88 211 diversity as a business imperative. Rest of Europe 0 0 0 0 0 0 AmericasAAA 0 0 0 0 0 0 Rest of World The Group has also established the Global 2 3 5 2 2 4 Total Diversity & Inclusion Board, which works 217 135 352 224 182 406 with the company to identify potential areas for improvement, define new initi- Note: The personnel data shown in the following chapter relate to Barilla G. and R. Fratelli with the exception of Mexico, where 85 people were employed on fixed-term contracts in 2018 and 58 people in 2017. Under national legislation in force in the atives and monitor existing ones, in order United States, the distinction between permanent and fixed-term contracts does not apply: the employment relationship can to ensure that Barilla continues to make be interrupted at any time by both parties without any liability. For the purposes of this document, Barilla people in the United States are considered to be hired on a permanent contract basis. progress in becoming a model compa- ny in the areas of diversity and inclusion.
142 143 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9
Barilla’s focus on ensuring diversity and in- the new generations while at the same time RESPECT FOR DIVERSITY clusion among its people also involves in- enhancing the skills of its senior workers. tegrating different generations within the company, paying attention to the needs of Barilla works every day to achieve an ev- the Group in the field of D&I. It therefore er-increasing balance between genders sets itself increasingly challenging targets in the company, respecting personal ori- to be considered an increasingly inclusive entations and values. The enhancement of company for women. female talent plays an important role for EMPLOYEES BY AGE GROUP 10% <30 BARILLA PEOPLE BY PROFESSIONAL CATEGORY 38% 2017 2018 >50 Total Women Total Women Executives 163 33 172 36 52% Managers 612 237 620 249 Eployees 1,764 760 1,767 770 30-50 Workers 4,958 1,241 4,998 1,242 Sales Force 421 106 531 146 Total 7,918 2,377 8,088 2,443 BARILLA PEOLPLE BY LENGHT OF SERVICE
39% 36% of Barilla’s executives and managers are women, increasing in comparison to the 35% of 2017 23% WOMEN MEN SHARE OF WOMEN IN THE GLOBAL TALENT POOL
16% 51% WOMEN 61% 77% 84%
FROM 0 TO 15 FROM 16 TO 30 OVER 31 YEARS 49% 49% 36% 15% MEN
144 145 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9
Gender diversity is also ensured by the all its employees in accordance with cur- RETURN TO WORK INDEX RETENTION INDEX support for balancing work with private rent regulations and local legislation. life. Barilla in fact grants parental leave to 91% 83%
EMPLOYEES WHO HAVE MADE USE OF PARENTAL LEAVE In particular, in the Parma office, in order ments, the role of parents and the needs of 2018 to promote a balance between people’s the family, Barilla confirmed its agreements Men Women Total private, work and social life, the Group with three nursery schools and kindergar- launched the Winparenting project aimed tens. Executives 1 1 2 at employees with children from zero to 12 Managers 9 22 31 years. This initiative is a concrete example At Barilla, respect for diversity is not limited Employees 11 31 42 Workers 41 43 84 of how Barilla embraces diversity and cares solely to enhancing female talent and sup- Sales Force 9 6 15 about its employees first of all as People, porting parenting, but embraces a wider Total 71 103 174 showing its close interest in one of life’s perimeter, which includes the protection most significant experiences: becoming of all freedoms and human rights. Barilla EMPLOYEES WHO HAVE RETURNED TO THE COMPANY AFTER PARENTAL LEAVE parents. does not therefore tolerate any form of 2018 discrimination or exclusion based on age, Winparenting is a tool designed to sup- culture, ethnicity, nationality, religious be- Men Women Total port managers and parents through every lief, origin, political opinion, marital status, Executives 1 1 2 stage of parental leave, including prepa- gender and sexual orientation. Managers 9 21 30 ration, the whole period of leave and the Employees 12 22 34 eventual return to work. As part of this In order to promote a more inclusive cul- Workers 39 40 79 programme, the Group has developed an ture every day, the Group promotes and Sales Force 9 5 14 online platform to provide employees with supports the establishment of ERGs (Em- Total 70 89 159 guidelines, advice and information on the ployee Resource Groups): interest groups relevant parental leave legislation, as well as created by employees for employees that EMPLOYEES WHO HAVE RETURNED TO THE COMPANY AFTER PARENTAL LEAVE AND WHO ARE STILL EMPLOYED TWELVE MONTHS AFTER RETURNING events and services available to parents. are focused on specific diversities. 2018 Winparenting also includes the MAAM© Men Women Total training path for new mothers and fathers, which shares information about services Executives 1 0 1 Managers 6 16 22 and testimonies related to each stage of Employees 6 10 16 parenting. Workers 36 34 70 Finally, in line with its objective of guaran- Sales Force 6 2 8 teeing a balance between work commit- Total 55 62 117
The data for parental leave relate to 89% of the company’s employees Return to work index calculated as: (number of employees who have returned from parental leave/total number of employees who have used parental leave) Retention index calculated as: (total number of employees who are still employed twelve months after returning from leave/ total number of employees who returned from parental leave during the previous reporting year)
146 147 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9
“The Barilla Employee Resource Groups are INCLUSIVO, in Canada, to promote an inclusive place of work for a key component of our INCLUSION strategy. all employees. I am proud of our employees, who are always committed to promoting POSITIVE CHANGES in our organisation. We want people to introduce INSIEME, in the USA, to promote diversity and equal opportunities the richness of DIVERSITY into our business. We in production plants. therefore encourage all our colleagues to join our ERGS”
Claudio Colzani, CEO, Barilla RESPEITO, in Brazil, to protect and respect personal differences in the workplace. DIVERSITY AND INCLUSION ACTIVITIES PROMOTED BY BARILLA EMPLOYEES
THISABILITY, in Italy and France, dedicated to issues connected During 2018, Barilla actively supported the various activities run by ERG groups around with disabilities. the world, in particular:
TOGETHER, in Nordic countries, to promote diversity and equal ALLEANZA, in the United States, to support Latino and opportunities. African-American minorities.
VOCE, in Italy, France, Germany and the United States, to discuss ARMONIA, in Greece, to promote diversity and equal opportunities. LGBTI issues.
BALANCE, in Italy, Central Europe and the United States, to WELCOME HOME, in Italy, to promote a multicultural place promote the right balance between work and private life. of work.
HAND IN HAND, in AAA area countries, to promote gender YOUNG, in Italy, to support differences between different genera- diversity and equal opportunities. tions in the company.
148 149 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9
As regards the rights of LGBTI (Lesbian, crimination and to support LGBTI workers. to provide employment for a group of ref- duction facility for refugees hosted in Ger- Gay, Bisexual, Transgender, Intersex) work- ugees, through an apprenticeship contract, many. Barilla offers refugees the oppor- ers, since 2017, Barilla, the first Italian com- Furthermore, in order to support LGB- at the Pedrignano office and the group’s tunity to participate in an apprenticeship pany to sign up to a United Nations Initia- TI workers, in 2018, Barilla announced its production sites. The objective of the pro- period in which they have the opportunity, tive, has actively supported the Standards sponsorship of Openly, a new digital news ject is to support refugees received in Italy also through work, to learn the German of Conduct for Business of the UN High platform, developed by the Thomson Reu- to integrate more easily into Italian society, language and deepen their knowledge of Commissioner Office for Human Rights, ters Foundation, dedicated to reporting particularly by joining the world of work. the local culture, with a view to greater in- which aim to deal with the issue of LGBTI global problems affecting the LGBT+ com- tegration and inclusion in the community. discrimination in the business world. The munity. In its role as the philanthropic divi- GERMANY During 2018, Barilla hired 8 refugees as a Standards of Conduct for Business aim sion of Thomson Reuters, the Foundation result of this initiative. to establish rules of conduct that compa- serves as an impartial source of leadership The Group has begun to work with local nies should follow when dealing with LG- in underestimated areas such as slavery, Chambers of Commerce on a series of in- BTI employees, suppliers, customers and women’s rights, climate change and more. itiatives aimed at promoting employment distributors. These rules of conduct have With the advent of Openly, the coverage in the Cologne office and the Celle pro- been established to support and respect of LGBT+ problems and innovations has the rights of LGBTI communities wherev- now been added to the list of topics for er companies operate, to eliminate dis- analysis by the foundation. SUPPORTING PEOPLE WITH DISABILITIES
OCCUPATIONAL INCLUSION PROGRAMMES FOR REFUGEES With regard to the issue of disability, the the crucial stages of the initiative at its Par- Group is careful to create accessible and ma site, inviting its employees to take part, inclusive workplaces. During the year, Baril- providing mentors with specific skills and se- In a historical period characterised by a who guides them through a job placement la developed an awareness-raising and train- lected some interesting prototypes in 2018. high increase in migratory flows, as a result process, which gives them the opportuni- ing course for its people on this subject and of global crises and conflicts, the Group ty to learn both the Swedish language and their integration into the world of work. The During the annual Disability Matters Europe is implementing local projects and initi- a new profession. Barilla’s goal, at the end aim of this process was to encourage the Conference & Awards, one of the most atives to welcome, include and integrate of this process and following a language development of creative and innovative ide- important corporate events on the subject refugees arriving in European countries. test, is to offer the people involved in this as and solutions to overcome the physical of disability and its protection in the work- initiative the opportunity to be hired at the and social barriers to people with disabilities place, held in Switzerland, Barilla received SWEDEN production plant. During 2018, Barilla Fil- in the company. the prestigious Step-to-Success award. ipstad hired 10 refugees and received very The award aims to identify and celebrate Barilla has started a partnership with the positive feedback. The Group maintained its commitment to companies that are starting out on the path national employment centre and the the Hackability event involving interdiscipli- to innovation, action and transformation in Swedish for Immigrants (SFI) association ITALY nary teams, in which people with disabilities, respect of people with disabilities, whether to host a group of refugees received by together with makers and designers, design they are employees, customers or both. The Sweden within its production plant. Each In Italy, in partnership with Adecco and the cooking tools and new packaging suitable award encourages the winners, whose ini- of these people is supported, over a six- United Nations High Commissioner for Ref- for the needs of people with special needs. tiatives have been implemented for no less month period, by a Company supervisor, ugees, Barilla launched a project intended Since the end of 2017, Barilla has hosted than six months to no more than two years,
150 151 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9 and who demonstrate a significant promise ing the necessary measures to eventually 9.2 THE WELLBEING OF EMPLOYEES of long-term success, for having the com- become an employer or supplier of choice mitment and perseverance to continue tak- for disability.
As an integral part of its sustainability path, to protecting people’s health. The under- Barilla pays particular attention to pro- lying theme of all these projects is Barilla’s moting the wellbeing of its People. This desire to help its People live better lives, commitment is reflected in the numerous by promoting a greater balance between People Care initiatives launched by the private life and working life and adopting Group that range from Smartworking tools healthier lifestyles.
SMARTWORKING
For the past 5 years, Barilla has allowed its Many so-called “time-saving” services have employees to take part in the Smartworking also been introduced into the company to project, which aims to promote the devel- help employees carry on with their daily opment of a work environment that is more lives, even outside the workplace, such as inclusive and attentive to people’s needs. receiving parcels at the company for em- Thanks to Smartworking, the Group allows ployees, the in-house laundry and the op- its employees to manage their activities tion to book take-away hampers for dinner. more independently, deciding how, where and when to work, adapting their working methods to personal and business needs, so as to best meet their objectives.
1,414 people benefited from the Smartworking programme during the year
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9.3 ATTRACTING AND HIRINGS BY GEOGRAPHICAL AREA AND GENDER 2017 2018 DEVELOPING TALENTS Men Women Total Men Women Total 48 19 67 105 56 161 Italy 106 63 169 165 78 243 Rest of Europe 53 31 84 56 24 80 AmericasAAA 5 7 12 9 6 15 Rest of World 6 10 16 15 11 26 Barilla has always been committed to seek- As regards the search and selection of new Total 218 130 348 350 175 525 ing and developing the best talents, both profiles in the labour market, Barilla has es- within the Group and on the outside, who tablished its own Employer Value Proposi- stand out for their ability to make a concrete tion (EVP) in order to attract the best talents, DEPARTURES BY GEOGRAPHICAL AREA AND GENDER contribution to the responsible and lasting with the skills required by the Group, and to 2017 2018 growth of the Company. To support this guarantee the increasing loyalty of those al- Men Women Total Men Women Total vision, Barilla offers its People a stimulating ready present in the Company. Italy 53 24 77 68 21 89 work environment that enhances the skills Rest of Europe 146 120 266 130 108 238 of each individual and guarantees concrete BARILLA’S EVPS America 45 18 63 42 18 60 opportunities for professional growth. AAA 12 7 19 13 4 17 • HUMAN TOUCH: sense of belonging, Rest of World 6 9 15 13 10 23 In particular, the Group has defined a spe- family culture and a business guided Total 262 178 440 266 161 427 cific internal selection process aimed at by strong values with special attention identifying the best talents among em- paid to care and respect for People. HIRINGS BY GEOGRAPHICAL AREA AND AGE BAND ployees for covering vacant positions in • SENSE OF PURPOSE: pride of being 2017 2018 the Company. If a position exists, this pro- one of the Barilla People and doing an cess involves searching for a suitable profile important job. >30 30-50 <50 >30 30-50 <50 within the Company in order to promote • EMBRACING CHALLENGES: a dynamic Italy 4 29 44 7 14 68 Rest of Europe 65 131 70 53 114 71 the personal and professional growth of and meritocratic environment that al- America 11 36 16 15 22 23 employees. In order to guarantee equal op- lows people to take on challenges and AAA 3 13 3 3 12 2 portunities in the internal selection process, initiatives. Rest of World 1 13 1 2 15 6 Barilla advertises vacant positions globally Total 84 222 134 80 177 170 and ensures that everyone in the Group can apply. DEPARTURES BY GEOGRAPHICAL AREA AND AGE BAND Selected candidates are assessed by tele- 2017 2018 phone interviews, online questionnaires and >30 30-50 <50 >30 30-50 <50 individual interviews. If an employee is not Italy 31 34 2 64 96 1 selected for a vacant position, he/she will Rest of Europe 64 95 10 109 117 17 receive an evaluation and a series of recom- America 29 39 16 31 40 9 mendations in order to promote his/her pro- AAA 5 6 1 6 9 0 Rest of World 4 11 1 10 15 1 fessional development. Total 133 185 30 220 277 28
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PERMANENT STAFF POSITIVE TURNOVER INDEX 2017 2018 1,713 Barilla People included in the talent Men Women Total Men Women Total 4.1% 4.1% 4.1% 6.5% 7.7% 6.8% management system PERMANENT STAFF NEGATIVE TURNOVER INDEX 2017 2018 Men Women Total Men Women Total 4.9% 5.8% 4.6% 4.9% 7.1% 5.6%
At Barilla, the Employee Performance As- are then defined for each person, aimed at sessment System plays a fundamental role ensuring and facilitating the achievement of in enhancing people and their professional the objectives set. Subsequently, in the mid- development. This tool is in fact the basis for dle and at the end of the year, employees defining career paths and improving the skills are evaluated regarding their achievement of of employees, while at the same time allow- the defined objectives and the development ing the Company to recognise the contribu- of their skills, in particular those concerning tion each person makes to the achievement leadership. of corporate objectives and the implemen- tation of the “Good for You, Good for the The Performance Assessment System is Planet” Mission. part of the broader global talent assessment programme, by means of which the Group monitors and evaluates the professional 2,280 Barilla People growth potential of its People. In order to guarantee the transparency and clarity of included in the annual roles and responsibilities and tasks assigned performance management and make a precise assessment, Barilla has system mapped 2,250 organisational positions, for- malising them in as many job descriptions.
In particular, the Performance Evaluation As a complement to the global talent as- System provides three fundamental oppor- sessment programme, a process is run an- tunities for dialogue and discussion between nually by Barilla to identify employees with employees and their managers. To begin the highest annual performance levels and with, people are asked to define, in agree- a high potential for professional growth who ment with their managers, the main objec- could join the Group’s Global Talents. The tives to be achieved during the year, as well latter receive targeted training from Barilla as the performance levels associated with with the aim of assigning them to manageri- them. Structured skills development plans al positions over a five-year period.
156 157 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9 9.4 TRAINING AND COMMUNICATION
In order to support and promote People’s company involved in Human Resources AVERAGE HOURS OF TRAINING BY CATEGORY AND GENDER personal and professional growth, Baril- (HR) processes. The training activities in- la has devised specific training courses volved 1,500 people worldwide, including 2018 to improve the potential and expand the through specific road shows organised in Men Women Total skills of its employees, while respecting all the countries where the Barilla Group the Group’s values and strategy. has a presence. During the initiative, a Executives 24.5 34.6 26.6 specific digital portal was also launched Managers 17.7 18.7 18.1 In order to guarantee People access to a through which all HR processes were Employees 23.2 15.8 20.0 structured training offer that responds to made accessible and transparent to com- Workers 13.7 13.1 13.5 Sales Force 3.3 4.8 3.7 their training needs, Barilla has set up a pany employees. business unit dedicated to People devel- opment activities. The HR Expo initiative was thus the culmi- nation of years of work aimed at simpli- In addition, Barilla Academies have been fying processes, connecting to corporate TRAINING HOURS BY SUBJECT AREA established over the years, which pro- strategy and engaging managers as key 17% vide training and involve employees in players in managing their People. 2% strengthening their individual skills in OTHER FOREIGN the main professional fields, through the In order to provide its People with high LANGUAGES Accademie Funzionali (Functional Acade- quality training, the Group invested over mies) or in specific strategic areas for Ba- 2.4 million euros during the year for a total rilla’s business, thanks to the Accademie of over 120 thousand hours of training. 1% della Pasta (Pasta Academies). ETHICS AND 48% INTEGRITY HEALTH 2017 was also a year of transparency and AND SAFETY 5% clarity for human resource management In 2018, more than processes, thanks to the HR Expo listening DIVERSITY AND INCLUSION and training initiative, aimed in particular at 120,000 hours identifying areas for improvement in the of training management of the Group’s People. 8% 19% QUALITY AND LEADERSHIP AND The project included training initiatives FOOD SAFETY SOFT SKILLS implemented globally for everyone in the
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INTERNAL COMMUNICATION port the initiatives carried out by the com- Transparency, greater accessibility, even pany’s ERG groups. In particular, Barilla’s on the move, and sharing of content from internal communication promoted and across the organisation added value to Internal communication at Barilla has al- cies and procedures needed to carry out coordinated the various activities, making internal communication, which aimed to ways played a key role in promoting the their work, as well as digital tools and ap- the right communication tools available enhance the activities and initiatives imple- spread of corporate values throughout plications designed to promote inclusion, to the employees involved and ensuring mented by the People during the year and the organisation, informing people about share needs and interests with colleagues alignment with the corporate strategy. allowed Barilla to achieve important goals the priority initiatives promoted during and give visibility to initiatives and activities in line with its way of doing business. the year and the company’s performance, promoted inside and outside the organisa- as well as involving employees in all Group tion. Over the years, the corporate portal offices in sharing ideas, proposals and sug- has become an increasingly dynamic tool gestions, with the aim of creating a collab- to better support the adoption of Smart- orative context, improving work process- working and provide all Barilla People with es, having a positive effect on the internal improved accessibility to content shared climate and on organisational wellbeing. both by smartphone and tablet.
The key elements of Barilla’s internal During the year, Barilla recorded over communication strategy are, on the one 460,000 accesses to the journal on the hand, the Local Town Hall Meetings, local home page of the portal with a total of events held periodically in all Group of- over 335,000 views at Group level, a sign fices, and, on the other, the Global Town of widespread appreciation of this tool by Hall Meetings, held on a four-monthly the people. To ensure the presence of cur- basis and disseminated throughout the rent and interesting content for Group em- Group in digital format. Both these initi- ployees, the portal home page is updated atives aim to allow direct discussion be- daily with product and activity news, both tween employees and senior managers local and global, and includes an interface to share strategies and achievements, and integrated with the press review. give visibility to business initiatives in the various markets. The internal portal is also accessible from workstations, monitors and digital totems Barilla’s internal communication also uses in all the Group’s production plants, allow- various digital channels to involve every- ing the people who work on the produc- one in the Group. In particular, the com- tion lines to benefit from the content of pany has a corporate social network and the portal and keep up-to-date with news a digital newspaper, which was read by from the world of Barilla. 4,400 people during the course of 2018. Furthermore Barilla has implemented an An important aspect of internal communi- internal portal through which employees cation activities carried out during the year are provided with the documents, poli- was the work done to promote and sup-
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9.5 PEOPLE’S HEALTH In order to guarantee the highest levels of safety for People at all Group sites, Baril- hours of AND SAFETY la regularly carries out numerous checks 48,747 and audits for fire prevention and safety training provided during standard verification purposes. In particu- the year on issues of health lar, the health and safety department con- ducts over 50 audits annually in the var- and safety issues in For Barilla, looking after People’s health al Health and Safety Management System ious company sites to verify compliance the workplace and wellbeing also means guaranteeing at its production facilities. In particular, this with local regulations on health and safety that everyone who works in the Group’s system, which exists in 80% of the Group’s in the workplace, as well as with the provi- Thanks to a detailed Occupational Health offices, production facilities and sales net- plants, was certified by an independent third sions of the OHSAS 18001 standard. and Safety Management System, constant work can work in healthy environments party as compliant with the international ISO checking of compliance with the regula- that ensure the health and safety of every 18001 standard. tions, as well as effective training of employ- individual. audits carried ees on the subject, Barilla recorded a 50% 76 reduction in the number of injuries com- In accordance with this vision, the Group out during the year in 50 pared to 2010. Also, as further evidence of has issued a specific policy for the manage- 87% of employees sites to verify safety the Group’s commitment in this area, no ac- ment and protection of health and safety work in OHSAS:18001 standards cidents have occurred in 7 production plants in the workplace. In addition to this docu- certified sites for at least a year. ment, Barilla has adopted an Occupation- Health and safety protection in the work- place is also guaranteed by Barilla by pro- viding continuous training on this issue -50% fewer accidents PRODUCTION SITES CERTIFIED BY OHSAS:18001 to all employees. In addition to the annual recorded, compared courses required by the relevant legislation, to 2010 the Group develops ad hoc training for all ITALY 14 newly hired staff, focusing in particular on 100% the main areas of risk associated with the job performed. Furthermore, the emer- REST OF EUROPE 10 gency teams set up within the Group take 90% part in specific courses on first aid proce- dures and on preventing fires and explo- AAA 1 sions. During 2018, Barilla provided over 100% 48,000 hours of training to its employees on occupational health and safety issues. 3 AMERICA 0%
N° OF PRODUCTION SITES % OF PRODUCTION SITES CERTIFIED OHSAS:18001
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NUMBER OF INCIDENTS BY GEOGRAPHICAL AREA 9.6 TRADE UNION RELATIONS
66 6 REST OF AMERICA EUROPE 0 In order to create an inclusive working presentanza Sindacale Unitaria (RSU) AAA environment that is attentive to People’s that exists in 10 production plants, 47 needs, Barilla maintains a constant di- 4 mills, offices and VVPP Venditori. alogue with all the trade union organi- The RSU coordinators meet twice a ITALY sations present in the Group, establish- year to discuss the national econom- ing long-lasting relationships based on ic and social situation, performance principles of integrity and transparency. indicators and strategies related to ACCIDENT SEVERITY INDEX the production plants. Local RSUs 2017 2018 In particular, discussions with the unions are also responsible for dealing with 0.49 0.35 take place in three main forums: matters arising at their individual sites,
Severity index calculated as: (total number of days of absence due to accidents/total number of hours worked) *1,000 such as training courses, environ- • the European Works Council or Comi- mental and safety issues, occupation- tato Aziendale Europeo (CAE); al impacts and specific local issues. ACCIDENT FREQUENCY INDEX • the National Trade Union confedera- 2017 2018 tion or Confederazione dei Sindacati Thanks to the responsible management Nazionali (CSN), which is supported by of relations with union representatives, in 10.24 10.23 national and local trade union offices; 2018, only 0.1% of hours worked at Barilla Frequency index calculated as: (total number of accidents/total number of hours worked) *1,000,000 • the site representation body or Rap- concerned strikes or labour disputes.
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9.7 COMMUNITY INCLUSION Bank New York, Food Bank Texas and In Sweden, Barilla renewed its support in Feeding America in the United States; 2018 for the non-profit organisation Hun- Bancos de Alimentos in Brazil; Food Bank ger Project, dedicated to fighting hunger Australia; TIDER Food Bank in Turkey; and around the world. As part of this collabora- Banque Alimentaire and Restos du Coeur tion, in July, the Group donated one kroner in France. to Hunger Project activities on specific pur- chases made by customers after activating Over the years, Barilla has established a a promotional code printed on the packag- strong relationship with the local areas ing. Alongside this initiative, Barilla Sweden where it operates, by constantly listen- Around Over 2.7 also supported the Stockholms Stadmis- ing and attending to their needs and the million tonnes of food sionen during the year, which distributed Group’s desire to promote solidarity and 4,230,000 euros hot meals to homeless people in the area. support for the various local communities donated during the year products donated during with which it relates every day. the year Every year, this commitment leads to nu- Around 4,300 merous initiatives and activities designed Activities continued during the year in France to promote social inclusion and provide hours of volunteering to support charitable initiatives run by food access to food for people in difficult situa- by Barilla employees banks to deal with situations where people tions or following natural disasters. Along- in company have little access to food. 150 employees of side these activities, there is also a broader the Group were granted paid leave to take commitment on the part of the Group to volunteering activities part in the annual food collection promot- supporting charities and non-profit associ- ed by food banks in France and Belgium. ations through sponsorships, product do- In addition to participating directly, Baril- nations and financial support. In particular, Over 14,000 la employees in France donated over 170 to guarantee the effectiveness, legality and tonnes of products to food banks and con- transparency of its charitable activities, Ba- visits to Barilla tinued to support the activities of the Restos rilla has issued a specific policy aimed at production plants du Coeur by donating 81 tonnes of food. regulating donation activities.
SUPPORT FOR REFUGEES PRODUCT DONATIONS
During 2018, Barilla started a collabora- forced to leave their countries of origin. Product donations by production plants numerous agreements with various local tion with Tent, an association founded by In particular, over the next five years, Barilla are a fundamental part of Barilla’s work associations that support people in diffi- Hamdi Ulukaya, CEO of Chobani, to mo- undertakes to train at least 75 refugees in to support local communities. In order to culty or with social problems. bilise the private sector for the purpose its production plants and offices in Swe- manage surplus food donations fairly and The main associations the Group works of improving the lives and livelihoods of den, France, Italy and Germany. Further- transparently, the Group has entered into with are Banco Alimentare in Italy; Food over 25 million men, women and children more, the Group works actively with local
166 167 CHAPTER 9 | DIVERSITY AND INCLUSION DIVERSITY AND INCLUSION | CHAPTER 9 organisations and government agencies to refugees in dedicated facilities in the city DEVELOPMENT IN AREAS to identify, train and accommodate refu- of Athens. In Lebanon, in partnership with OF SOCIAL DEPRIVATION gees in its workforce and provide key ser- the United Nations Development Program vices such as language training. (UNPD), Barilla launched the No Hunger project. By organising charity lunches in Barilla is keen to promote the development ter, involved the construction of a well to In addition, during the year the Group sup- various cities around the country, this pro- of the most economically and socially dis- provide the Djangobo (Ivory Coast) com- ported the development of new food do- ject aims to make people aware of the is- advantaged areas and communities. In this munity, which is home to almost 7,300 in- nation initiatives in Greece and Lebanon sue of access to food and food insecuri- context, the activities promoted by Barilla habitants, including around 3,000 children, to assist refugees. In Greece, for example, ty. In particular, the lunches organised by in collaboration with the Cocoa Horizons with access to a source of clean drinking the Group donates food and basic neces- the Group involve communities living in Foundation in support of cocoa growers in water. The second project involved the sities to associations and non-profit organ- poverty or difficult situations and refugee Ivory Coast were very important during 2018. construction of a school, in the village of isations that prepare and distribute meals groups present in the country. Dahiri (Ivory Coast)), designed to give chil- In particular, thanks to the #unsognochia- dren and young people in the community matocacao project, the Group carried out a real opportunity to study. two important projects in favour of these communities. The first one, called Safe Wa-
SUPPORT TO COMMUNITIES IN CRISIS SITUATIONS
Barilla has always been at the forefront of ated to bring help to people in disaster sit- supporting institutions and communities uations. The unit includes a kitchen truck, in the most critical situations related to a kitchen module for people with coeliac natural disasters. For years, the Group has disease, a marquee with benches and ta- been working with the emergency ser- bles and a tented camp where 500 meals vices in Italy to provide support to people an hour can be prepared. All this provides affected by disasters. not only a source of sustenance for the needy, but above all a place for people to This collaboration has led to an emergen- find a warm welcome and a hot meal. cy mobile unit (Colonna Mobile) being cre-
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Methodological note GRI Index
170 171 METHODOLOGICAL NOTE METHODOLOGICAL NOTE
The “Good for You, Good for the Planet companies operating in Italy, France, Swe- PRINCIPLES FOR THE CHOICE OF CONTENT Report” is the main reporting tool for the den, Germany, Greece, Turkey, Russia, Barilla is committed to an open and transparent dialog environmental and social performance of U.S.A. and Mexico. The data on distribu- with all people who take part in the company’s activities the Barilla Group. tion and sales include the countries above, STAKEHOLDER in any capacity, or are influenced by them. The Report and also Austria, Belgium, Croatia, Den- INCLUSIVITY describes the Group’s key stakeholders, their demands and It provides a representation of the strate- mark, Norway, The Netherlands, Poland, expectations from Barilla, as well as the modes of listening and engagement. gies, projects and outcomes achieved by Slovenia, Spain, Switzerland, United Arab the Barilla G.e.R. Fratelli S.p.A., with a view Emirates, Brazil, Canada, Australia, China, Barilla measured and described its sustainability performance with due consideration for the wider to creating long-term value and looking af- Japan and Singapore. international context and the global debate on food and ter the expectations of its stakeholders. nutrition issues. We strove to identify the Group’s current SUSTAINABILITY There were no significant events or change and perspective contribution to local and global sustainable CONTEXT This Report, which is published every year in the measurements that could impact the development, also by clarifying the contribution made by since 2008, is written in accordance with comparability of the information reported Barilla’s Good for You, Good for the Planet commitment to achieving the United Nations Sustainable Development the Sustainability Reporting Standards is- in this report to those illustrated in the pre- Goals. sued in 2016 by the Global Reporting Initi- vious edition, except for any instance de- ative (GRI), at Core Option level. tailed in ad hoc footnotes. This document reports on the social and environmental issues linked to Barilla’ business that are most relevant for MATERIALITY Barilla and the communities where it operates, based on These Guidelines represent the most For more information on objectives, indi- stakeholders engagement, management evaluations and widespread and internationally recognized ces and results, or to make a comment on context analysis. standard in the field of non-financial re- this report, kindly contact: goodforyou- porting. It should be noted that all the GRI [email protected] The issues reported, their qualitative and quantitative indicators reported refer to the version of indicators and the reporting period reflect the set of the GRI Standard published in 2016. This report was written with the assistance economic, environmental and social impacts of the entire COMPREHENSIVENESS of KPMG Advisory S.p.A.. Group, in all geographical areas and contexts where the The data and information reported refer Group’s activity can have a significant influence on its stakeholders. to the tax year from 1 January to 31 De- cember 2018, unless otherwise indicated. The reporting period is the same as the BALANCE BETWEEN The document describes the Group’s key performance and Consolidated Financial Statements for the POSITIVES AND reports the core areas of the Group as well as the areas that year ended on 31 December 2018, any NEGATIVES need to be improved and the future challenges difference is specified in the document. The data on production refer to the Group
172 173 METHODOLOGICAL NOTE METHODOLOGICAL NOTE
MATERIAL TOPICS GRI REFERENCE PRINCIPLES FOR THE CHOICE OF CONTENT TOPIC BOUNDARY IDENTIFIED STANDARDS Wherever possible, the Report provides the data on the Internal External last two years of operation, ending on 31 December 2016 Limitations and 2017. It also provides information on the quantitative impact impact COMPARABILITY and qualitative objectives of the Barilla Group for 2020 Selected raw Materials and 2030, in accordance with its business strategy. materials Comparisons with data from previous years are provided Procurement where relevant. practices In order to ensure the reliability of the information reported, Traceability and actual measurements have been preferred to estimates transparency Marketing and wherever possible. Where estimates were needed, they labeling of products have been based on the best available methodologies, ACCURACY and services or on random sampling, and their use has been clearly flagged. Data on consumption and emissions has been Innovation and Customer health and calculated following the methodology defined by the IPCC quality for food safety safety - Intergovernmental Panel on Climate Change. Excellent recipes for Barilla reports on a yearly basis. Like the previous edition, * superior flavors this document is published at the same time as the RAPIDITY Consolidated Financial Statements for the year ending 31 Supplier social December 2018. Human and animal assessment The description of activities and projects contains welfare information written in such a way that it is readily Animal welfare CLARITY understandable for any stakeholder, with some technical data and trade specific information. Perfect nutritional Customer health profile and safety Data is collected with the support of a variety of corporate functions and contacts in the countries involved, also using Diversity and equal IT systems for data collections. This is followed by a process Diversity opportunity of consolidation and validation by representatives from and Inclusion RELIABILITY the various working groups, each for their own area. The Non-discrimination document is not subject to third independent verification. Promoting healthy Health and access The responsibility for all data and information contained in lifestyles and the report therefore rests wholly on the management nutrition education to food of Barilla. "Modern" food trends *
Procurement practices Sustainable agriculture Supplier social assessment
Non-discrimination Human Rights Supplier social assessment
174 175 METHODOLOGICAL NOTE METHODOLOGICAL NOTE
MATERIAL TOPICS GRI REFERENCE TOPIC BOUNDARY IDENTIFIED STANDARDS Internal External Limitations impact impact Recycling and food Effluents and waste waste
Taking care of Indirect economic the local area and communities impacts Responsible Marketing and marketing and labeling of products labeling and services
People Care Employment
Energy Water Sustainable Emissions production sites and health and safety Effluents and waste Occupational health and safety
176 177 GRI INDEX GRI INDEX
GENERAL DISCLOSURES
ORGANIZATIONAL PROFILE Indicator Indicator description Section of the report Omissions 102-1 Name of the organization Barilla Group > Group profile 102-2 Activities, brands, products and services Barilla Group > Group profile > Group brands 102-3 Location of headquarters Barilla Group > Group profile 102-4 Location of operations Barilla Group > Group profile > Barilla in the world 102-5 Ownership and legal form Barilla Group > Group profile 102-6 Markets served Barilla Group > Group profile 102-7 Scale of the organization Barilla Group > Group profile Total number of employees by employment contract, 102-8 Diversity and inclusion > Barilla People region and gender Supply chain (activities, products, number of suppliers, suppliers by Good for the Planet > Responsible supply chains 102-9 geographical area, monetary value of payments made to suppliers) Good for the Planet > Protection of animal welfare Significant changes to the organization’s size, structure, ownership, 102-10 Annex > Methodological note or supply chain during the reporting period How the organization applies the precautionary 102-11 Governance > Risk management principle or approach Externally-developed economic, environmental and social charters, How we respond to global challenges > The consumer goods sector 102-12 How we respond to global challenges > Contribution to principles, or other initiatives to which the organization subscribes 2030 Agenda Main memberships of industry or other associations, and national or How we respond to global challenges > The consumer goods sector 102-13 international advocacy organizations
178 179 GRI INDEX GRI INDEX
STRATEGY
Indicator Indicator description Section of the report Omissions Value for people and for society as a whole 102-14 Statement from the Chairman and the CEO Who we are and who we want to be Governance > Risk management 102-15 Key impacts, risks, and opportunities How we respond to global challenges > International scenario How we respond to global challenges > BCFN Foundation ETICHS AND INTEGRITY Indicator Indicator description Section of the report Omissions The Barilla Group > Values How we respond to global challenges > Contribution to the 2030 102-16 Values, principles, standards, and norms of behavior Agenda > Our mission Governance > The Code of Ethics 102-17 Mechanisms for advice and concerns about ethics Governance > The Code of Ethics GOVERNANCE Indicator Indicator description Section of the report Omissions Governance structure of the organization, including committees 102-18 of the highest governance body. Committees responsible for Governance > Our model decision-making on economic, environmental and social topics Process for delegating authority for economic, environmental, and 102-19 social topics from the highest governance body to senior executives Governance > Our model and other employees Appointment of an executive-level position or positions with responsibility for economic, environmental, and social topics, and 102-20 Governance > Our model procedures by which post-holders report directly to the highest governance body 102-22 Composition of the highest governance body and its committees Governance > Our model Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, 102-26 Governance > Our model value or mission statements, strategies, policies, and goals related to economic, environmental, and social topics Highest governance body’s role in identifying and managing economic, environmental, and social topics and their impacts, risks, and opportunities. Use of stakeholder consultation to support 102-29 Governance > Our model Governance > Risk management the highest governance body’s identification and management of economic, environmental, and social topics and their impacts, risks, and opportunities
180 181 GRI INDEX GRI INDEX
STAKEHOLDER ENGAGEMENT Indicator Indicator description Section of the report Omissions 102-40 List of stakeholder groups Responsible strategy > Stakeholders’ engagement Percentage of total employees covered by collective bargaining 100% of Barilla employees are covered by collective bargaining 102-41 agreements agreements 102-42 Basis for identifying and selecting stakeholders with whom to engage Responsible strategy > Stakeholders’ engagement 102-43 Approach to stakeholder engagement Responsible strategy > Stakeholders’ engagement Key topics and concerns raised through stakeholder engagement, 102-44 Responsible strategy > Stakeholders’ engagement and respective response REPORTING PRACTICE Indicator Indicator description Section of the report Omissions List of all entities included in the organization’s consolidated financial 102-45 Annex > Methodological note statements, and any of these not covered by the sustainability report Responsible strategy > Stakeholders’ engagement 102-46 Defining report content Annex > Methodological note 102-47 Material topics identified Responsible strategy > Materiality matrix Effect of any restatements of information given in previous reports, 102-48 Annex > Methodological note and reasons for such restatements 102-49 Significant changes from previous reporting periods Annex > Methodological note 102-50 Reporting period Annex > Methodological note 102-51 Date of most recent report Annex > Methodological note 102-52 Reporting cycle Annex > Methodological note 102-53 Contact point for questions regarding the report Annex > Methodological note 102-54 Claims of reporting in accordance with the GRI Standards Annex > Methodological note 102-55 GRI content index Annex > GRI Index 102-56 External assurance The report has not been externally assured
182 183 GRI INDEX GRI INDEX
SPECIFIC DISLOSURES
GRI 200: ECONOMIC PERFORMANCE GRI 203: INDIRECT ECONOMIC IMPACTS Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Diversity and Inclusion > Inclusion of communities 103-2, 103-3 203-1 Infrastructure investments and services supported Diversity and Inclusion > Inclusion of communities GRI 204: PROCUREMENT PRACTICES Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for the Planet > Responsible supply chains 103-2, 103-3 Good for the Planet > Responsible supply chains > Sustainabile Proportion of spending on local suppliers for the most significant 204-1 Agriculture Project locations of operation Good for the Planet > Protection of animal welfare Good for the Planet > Responsible supply chains > Sustainabile Percentage of purchased volume from suppliers compliant with G4 FP1 Agriculture Project company’s sourcing policy Good for the Planet > Protection of animal welfare Percentage of purchased volume which is verified as being in Good for the Planet > Sustainable management of packaging G4 FP2 accordance with internationally recognized responsible production materials standards GRI 205: ANTI-CORRUPTION Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Governance > Fighting corruption 103-2, 103-3 205-1 Operations assessed for risks related to corruption Governance > Fighting corruption Communication and training about anti-corruption policies and 205-2 Governance > Fighting corruption procedures The Barilla Group recorded no incidents of corruption during the 205-3 Confirmed incidents of corruption and actions taken year GRI 206: ANTI-COMPETITIVE BEHAVIOR Indicator Indicator description Section of the report Omissions Legal actions for anti-competitive behavior, anti-trust, and monopoly The Barilla Group recorded no legal actions for anti-competitive 206-1 practices behavior, anti-trust, and monopoly practices
184 185 GRI INDEX GRI INDEX
GRI 300: ENVIRONMENTAL PERFORMANCE GRI 301: MATERIALS Indicator Indicator description Section of the report Omissions Good for the Planet > Responsible supply chains GRI 103-1, Management approach Good for the Planet > Protection of animal welfare 103-2, 103-3 Good for the Planet > Sustainable management of packaging materials Good for the Planet > Responsible supply chains Good for the Planet > Sustainable Agriculture Project 301-1 Materials used by weight or volume Good for the Planet > Protection of animal welfare Good for the Planet > Sustainable management of packaging materials 301-2 Recycled input materials used Good for the Planet > Sustainable management of packaging materials 301-3 Reclaimed products and their packaging materials Good for the Planet > Sustainable management of packaging materials GRI 302: ENERGY Indicator Indicator description Section of the report Omissions Good for the Planet > Sustainable production > Sustainable GRI 103-1, management of the Barilla’s production activities Management approach 103-2, 103-3 Good for the Planet > Sustainable production > Focus on reducing energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 302-1 Energy consumption within the organization energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 302-2 Energy consumption outside of the organization energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 302-3 Energy Intensity energy consumption and emissions
186 187 GRI INDEX GRI INDEX
GRI 303: WATER Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for the Planet > Sustainable production > Attention to water use 103-2, 103-3 303-1 Water withdrawal by source Good for the Planet > Sustainable production > Attention to water use GRI 305: EMISSIONS Indicator Indicator description Section of the report Omissions GRI 103-1, Good for the Planet > Sustainable production > Focus on reducing Management approach 103-2, 103-3 energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 305-1 Direct (Scope 1) GHG emissions energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 305-2 Energy indirect (Scope 2) GHG emissions energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 305-4 GHG emissions intensity energy consumption and emissions Good for the Planet > Sustainable production > Focus on reducing 305-5 Reduction of GHG emissions energy consumption and emissions GRI 306: EFFLUENTS AND WASTE Indicator Indicator description Section of the report Omissions Good for the Planet > Sustainable production > Focus on reducing GRI 103-1, energy consumption and emissions Management approach 103-2, 103-3 Good for the Planet > Sustainable production > Attention to waste production 306-1 Water discharge by quality and destination Good for the Planet > Sustainable production > Attention to water use Good for the Planet > Sustainable production > Attention to waste 306-2 Waste by type and disposal method production GRI 400: SOCIAL PERFORMANCE GRI 401: EMPLOYMENT Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Diversity and Inclusion > Barilla People > Trade union relations 103-2, 103-3 New employee hires and employee turnover by age, gender and 401-1 Diversity and Inclusion > Barilla People > Trade union relations geographical area 401-3 Parental leave Diversity and Inclusion > Barilla People > Trade union relations
188 189 GRI INDEX GRI INDEX
GRI 402: LABOR/MANAGEMENT RELATIONS Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Diversity and Inclusion > Barilla People > Trade union relations 103-2, 103-3 Percentage of working time lost due to industrial disputes, strikes G4 FP3 Diversity and Inclusion > Barilla People > Trade union relations and/or lock-outs GRI 403: OCCUPATIONAL HEALTH AND SAFETY Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Diversity and Inclusion > Barilla People > People’s health and safety 103-2, 103-3 Types of injury and rates of injury, occupational diseases, lost days, 403-2 and absenteeism, and number of work-related fatalities by region Diversity and Inclusion > Barilla People > People’s health and safety and gender The matters discussed by the Barilla European Company Committee (CAE), established in 2000 between the unions and company Health and safety topics covered in formal agreements with trade representatives, include occupational health and safety topics. 403-4 unions At every production site, furthermore, local union representatives are involved in specific committees for the management of occupational health and safety GRI 404: TRAINING AND EDUCATION Indicator Indicator description Section of the report Omissions Diversity and Inclusion > Barilla People > Training and communication GRI 103-1, Management approach Diversity and Inclusion > Barilla People > Attracting and developing 103-2, 103-3 talents Average hours of training per year per employee, by gender and 404-1 Diversity and Inclusion > Barilla People > Training and communication employee category Percentage of employees receiving regular performance and career Diversity and Inclusion > Barilla People > Attracting and developing 404-3 development reviews, by gender and employee category talents GRI 405: DIVERSITY AND EQUAL OPPORTUNITIES Indicator Indicator description Section of the report Omissions GRI 103-1, Diversity and Inclusion > Barilla People Management approach 103-2, 103-3 Diversity and Inclusion > Barilla People > Respect for diversity Diversity and Inclusion > Barilla People > Respect for diversity 405-1 Diversity of governance bodies and employees Governance > Our model
190 191 GRI INDEX GRI INDEX
GRI 405: NON-DISCRIMINATION Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Diversity and Inclusion > Barilla People > Respect for diversity 103-2, 103-3 The Barilla Group recorded no incidents of discrimination during 406-1 Incidents of discrimination and corrective actions taken the year GRI 414: SUPPLIER SOCIAL ASSESSMENT Indicator Indicator description Section of the report Omissions GRI 103-1, Good for the Planet > Sustainable production > The sustainable Management approach 103-2, 103-3 agriculture code> Supply chains with potential social issues Good for the Planet > Sustainable production > The sustainable 414-2 Negative social impacts in the supply chain and actions taken agriculture code> Supply chains with potential social issues GRI 416: CUSTOMER HEALTH AND SAFETY Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for You > Quality and food safety 103-2, 103-3 Assessment of the health and safety impacts of product 416-1 Good for You > Quality and food safety and service categories Incidents of non-compliance concerning the health and safety 416-2 Good for You > Quality and food safety impacts of products and services Percentage of production volume manufactured in sites certified by Good for You > Quality and food safety > Quality of production FP5 an independent third party according to internationally recognized processes food safety management system standards. Percentage of total sales volume of consumer products, by product FP6 category, that are lowered in saturated fat, trans fats, sodium Good for You > Nutrition > Barilla reformulation plans and added sugars Percentage of total sales volume of consumer products, by product FP7 category, that contain increased nutritious ingredients like fiber, Good for You > Nutrition > New Barilla products vitamins, minerals, phytochemicals or functional food additives. GRI 417: MARKETING AND LABELING OF PRODUCTS AND SERVICES Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for You > Responsible Marketing 103-2, 103-3 417-1 Requirements for product and service information and labeling Good for You > Responsible Marketing Policies and practices on communication to consumers about FP8 Good for You > Responsible Marketing ingredients and nutritional information beyond legal requirements.
192 193 GRI INDEX GRI INDEX
SECTOR SPECIFIC: HEALTH AND ACCESS TO FOOD Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for You > Food education 103-2, 103-3 Nature, scope and effectiveness of any programs and practices that promote access to healthy lifestyles; the prevention of chronic FP4 Good for You > Food education disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need. SECTOR SPECIFIC: ANIMAL WELFARE Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for the Planet > Protection of animal welfare 103-2, 103-3 Percentage and total of animals raised and/or processed, by species Good for the Planet > Responsible supply chains >The sustainable FP9 and breed type agriculture project Policies and practices, by species and breed type, related to physical FP10 Good for the Planet > Protection of animal welfare alterations and the use of anesthetic Percentage and total of animals raised and/ or processed, by species Buono per il Pianeta > Protection of animal welfare > Animal origin FP11 and breed type, per housing type supply chains: eggs, pork and beef > Eggs Policies and practices on antibiotic, anti-inflammatory, hormone, FP12 Good for the Planet > Protection of animal welfare and/or growth promotion treatments, by species and breed type
194 195 BARILLA G. E R. FRATELLI SINGLE-MEMBER JOINT STOCK COMPANY UNDER THE DIRECTION AND COORDINATION OF BARILLA INIZIATIVE S.P.A.
Registered Office: Via Mantova 166 - 43122 Parma Share Capital 180,639,990.00 fully paid up Tax ID code and Parma Companies Register Produced by No. 01654010345 Barilla Communication Registered in the Parma Economic and and External Relations Administrative Roll (Repertorio Economico Amministrativo - R.E.A.) under No. 169.146 Graphic Design VAT NO. 01654010345 Visualmade, Milan
Tel. +39 0521 2621 Photographs Fax + 39 0521 270621 Barilla Archive e-mail [email protected] Simone Bramante www.barillagroup.com Armando Testa
List of images:
P. 1, Barilla Archive P. 49, Barilla Archive P. 84, Barilla Archive P. 3, Barilla Archive, Simone Bramante P. 52, Sustainable Development Goals P. 84, Barilla Archive P. 5, Barilla Archive UN official website P. 91, Barilla Archive P. 8-9, Barilla Archive P. 55, Barilla Archive P. 97, Barilla Archive P. 18, Barilla Archive P. 56, Barilla Archive P. 98-99, Barilla Archive P. 18, Barilla Archive P. 56, Barilla Archive P. 118, Barilla Archive, Armando Testa P. 18, Barilla Archive P. 56, Barilla Archive P. 119, Barilla Archive P. 18, Barilla Archive P. 56, Barilla Archive P. 130, Barilla Archive P. 18, Barilla Archive P. 56, Barilla Archive P. 135, Barilla Archive P. 18, Barilla Archive P. 57, Barilla Archive P. 140-141, Barilla Archive P. 19, Barilla Archive P. 57, Barilla Archive P. 152, Getty Images P. 21, Barilla Archive P. 57, Barilla Archive P. 157, Barilla Archive P. 22-23, Barilla Archive P. 57, Barilla Archive P. 161, Barilla Archive P. 25, Barilla Archive P. 57, Barilla Archive P. 164-165, Barilla Archive P. 30, Barilla Archive P. 62-63, BCFN Eighth International P. 168, Barilla Archive P. 35, Barilla Archive, Simone Bramante Forum P. 170-171, Barilla Archive P. 36-37, Barilla Archive P. 78-79, Hero Images, Getty Images P. 43, Barilla Archive P. 83, Barilla Archive www.barillagroup.com 2 3